The Facts are Telling Since the beginning of 2012 Allana delivers three sets of drill results that provide a “net sellable 19 million tons of potash (mop)” or 19 years of mine life. Then look at our peers and the comparison of price change since the beginning of 2012? Below are news releases since Jan 2012 and tell those willing to read…a compelling story regarding a company on the move and one with a mission in mind…are we being painted as a company that will not likely get to production? The PEA reveals some very compelling numbers…opex $90p ton, capex $700m total, 36% rate of return…and with the pending BFS the potential for 2m tons produced per year. Now…compare these facts with any other junior out there and then ask why has Allana share price has dropped 34% this year?
13 Potash Companies
2012 Peer Comparison Jan 1/2012 April 5/2012
ALLANA POTASH CORP. .85 . .56 - .29 (34%)
ETHIOPIAN POTASH CORP. .53 .27 - .26 (49%)
WESTERN POTASH 1.13 1.03 - .10 (9%)
PASSPORT POTASH INC .26 .28 + .02 7%
ELEMENTAL MINERALS 1.20 1.24 +..04 3%
ENCANTO POTASH .26 .34 +..08 30%
IC POTASH CORP. .86 .99 + .13 15%
KARNALYTE RESOURCES INC 10.00 10.26 + .26 2%
SOUTH BOULDER MINES .98 1.04 + .06 6%
AGRIUM 67.00 87.23 + 20.23 30%
MOSAIC COMPANY 50.50 52.96 + 2.46 5%
POTASH CORP 41.00 45.13 + 4.13 10%
INTREPID POTASH 22.75 23.56 + .81 4%
( these 3 holes give 7 million tons of sellable KCL to Allana or 7 years of mine life at 1million tons per year)
Allana Intersects Further Strong Potash Mineralization and Extends Drilling Program
April 3, 2012: is pleased to announce that it has intersected strong potash mineralization in Holes DK-11-35, DK-11-36, and DK-11-37 Holes 35 and 36 intersected two main zones of potash mineralization, sylvinite and kainitite, and Hole 37 intersected kainitite. Due to excellent drill results management has decided to extend the drill program. Management is planning to release an updated 43-101 compliant mineral resource estimate in April and revised updates as needed after further expansion drilling."
Procurement of equipment for installation of pilot solution wells is well underway
( these 3 holes give 6.9 million tons of sellable KCL to Allana or 7 years of mine life at 1 million tons per year. Look at the work being done for the Feasibilty Study…)
Drilling Continues to Intersect Strong Potash Expanding the Deposit and Confirming Continuity
March 19, 2012: is pleased to announce that it has intersected two zones of strong potash mineralization in Holes DK-11-32, DK-11-33, and DK-11-34 ("Holes 32, 33,and 34"). All Holes are located southeast of the Musley Deposit, an area targeted to test the extension of the Sylvinite Zone into a gap in the previous drilling pattern. All holes intersected two main zones of potash mineralization, sylvinite and kainitite. Exploration drilling has shifted to the far eastern part of the property (Hole 46) as part of the mineral resource expansion drill program that management has designed to expand the mineral resources. Samples from Holes 35-45 are undergoing analysis or are en route to the laboratory in Saskatoon, Canada. Technical studies in support of the Feasibility Study are in progress including: *geotechnical drilling to supply large diameter core for rock mechanic testwork *solar evaporation pond construction and *environmental baseline studies and *hydrogeological studies. Allana has recently initiated *a ground resistivity survey over the western portion of its property to identify aquifers in the alluvial fans. This technique has been successful in the past at outlines water sources in sand and gravel. Mobilization of drilling equipment is ongoing and *water well drilling is expected to commence in Q2, 2012.
(IFC and LMM give Allana a 6m share “vote of confidence” with their mutual election to exercise their participation rights in Allana)
Liberty Metals & Mining and International Finance Corporation Exercise Participation Rights in Connection With $20 Million Bought Deal Financing for Further Proceeds of $4.7 Million
March 9, 2012: is pleased to announce that it has completed its non-brokered private placement financing (the "Financing") with Liberty Metals & Mining Holdings, LLC ("LMM"), a subsidiary of Liberty Mutual Insurance and the Company's largest shareholder, and International Finance Corporation ("IFC"), a strategic partner of the Company. Having elected to exercise their participation rights in connection with the Company's previously completed bought deal financing for gross proceeds in the amount of $20,000,000 (See Allana news release dated January 10, 2012), LMM has acquired 4,618,835 common shares of Allana (the "Common Shares") and IFC has acquired 1,309,632 Common Shares at
.80 per Common Share for aggregate gross proceeds in the amount of $4,742,774. The Financing remains subject to the receipt of final approval of the TSX and the Common Shares will be subject to a statutory hold period expiring on July 10, 2012.
Farhad Abasov, President and CEO of Allana, commented: "We are very pleased that both our strategic investors, LMM and IFC, are fully committed to supporting Allana's potash project in Ethiopia. Their continuous support will be critical in further development of our project as we are advancing the feasibility study."
( the planned model for capex is 60% long term debt or $800X60%= $480M) we have an expressed $600M on the table for debt financing…)
Allana Receives Significant Indicative Interest from Prospective Lenders for Project Financing
March 5, 2012: is pleased to announce that further to its press release on October 3, 2011, as part of its overall project financing strategy, initial discussions with various prospective lenders have been very positive and thus far Allana has received, in aggregate, non-binding indications of interest totaling over $600 million, exceeding the amount of debt financing Allana was initially contemplating to utilize to finance construction of its Dallol potash project (the "Project"). As a result, management is pleased that its targeted capital structure for the Project has thus far been well-received by lenders. Allana intends to continue working with its project financing advisor BNP ParibasFarhad Abasov, President and CEO, commented: "Allana is very encouraged by the formal expressions of interest from various propsective lenders consulted to date. We believe such indicative support underscores the technical merit of our project, their confidence in Ethiopia and the robust projected credit metrics of the Project which can support our targeted amount of project debt financing thereby increasing the potential returns to Allana shareholders. This is a significant development in our financing activities which, along with our current cash on hand, continued financial support from our existing strategic investors and demonstrated ability to access the equity capital markets even in the midst of challenging market conditions, gives us confidence that the Project will continue to be developed on schedule."
( these 3 holes give 5.7 million tons of sellable KCL to Allana or 5 years of mine life at 1 million tons per year)
ALLANA POTASH DRILLING INTERSECTS ROBUST POTASH AND PROVIDES FEASIBILITY AND INFRASTRUCTURE UPDATE
Feb 7, 2012: is pleased to announce that it has intersected two zones of strong potash mineralization in both Hole DK-11-29 ("Hole 29") and Hole DK-11-31 ("Hole 31).
| | Jan 16, 2012 ALLANA POTASH FILES PRELIMINARY ECONOMIC ASSESSMENT TECHNICAL REPORT FOR ITS DANAKHIL POTASH PROJECT For Immediate Release: January 16, 2012
Highlights of the Danakhil Potash deposit PEA include:
• After-tax Net Present Value at 12% discount of US $1.85 billion;
• After-tax Internal Rate of Return of 36.8%;
• Total development capital expenditures including mining, processing facilities, port and logistics infrastructure ("CAPEX") of US $796 million;
• Total operating expenditures ("OPEX") on a per tonne basis (including production, transportation/handling, port, loading costs) FOB on the Vessel of US $90.54
• PEA is based on Annual Production of one million tonnes of MOP per year using solution mining;
• Potential to expand production to two million tonnes per year of MOP; |