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Itafos Inc V.IFOS

Alternate Symbol(s):  MBCF

Itafos Inc. is a phosphate and specialty fertilizer company. Its businesses and projects include Conda, Arraias, Farim, Santana and Araxa. Conda is a vertically integrated phosphate fertilizer business located in Idaho, United States with a production capacity of over 550 Kiloton (kt) per year of mono ammonium phosphate (MAP), merchant grade phosphoric acid (MGA) and ammonium polyphosphate (APP), and approximately 27kt per year of hydrofluorosilicic acid (HFSA). Arraias is a vertically integrated phosphate fertilizer business located in Tocantins, Brazil with a production capacity of approximately 500kt per year of single superphosphate (SSP) and SSP with micronutrients (SSP+). Farim is a phosphate mine project located in Farim, Guinea-Bissau. Santana is a vertically integrated high-grade phosphate mine and fertilizer plant project located in Para, Brazil. Araxa is a vertically integrated rare earth element and niobium mine and extraction plant project located in Minas Gerais, Brazil.


TSXV:IFOS - Post by User

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Comment by kisstopherpon Aug 26, 2015 8:22am
134 Views
Post# 24051690

RE:Santana project

RE:Santana project
supra48 wrote:

The Santana project was part of my buying decision on Mbac ......and still is 



Competitive Advantage 

Brazil is currently dependent on the importation of fertilizers with approximately 67% of nutrients being imported. In addition, the continuous growth of agriculture (~5.0% pa) will increase the need for fertilizer imports, even when taking into account new fertilizer plants expected to start operating in the future.

Based on the crop outlook, Agroconsult is projecting an 80% increase in fertilizer demand through 2031, reaching 50.9 million tonnes.  By 2016, average annual growth is estimated to be 3.4% and should be close to 2.8% in the following years.  Both increases in area and more intensive usage, based on application of greater quantities of fertilizer per unit of area, are likely to drive this growth. Agroconsult estimates that fertilized area will rise from 84.2 million hectares (ha) to 93 million ha in 2016 and to 114.8 million ha in 2031 and average fertilizer use will increase from 337 kg/ha in 2011 to 361 in 2016 and 442 kg/ha in 2031.

Currently, there is no production of phosphate fertilizers in the Santana Project target area, resulting in phosphate fertilizers being imported from other domestic regions to the south or abroad.  The main supply of the phosphate fertilizers consumed in the target region are from (i) Port of Itaqui (imported); (ii) Port of Santos (imported); (iii) Port of Paranagu (imported); and (iv) southern Minas Gerais and Gois states (domestic), where there are local producers.

The Santana Project has a significant competitive advantage resulting from its strategic location. The distance covered by products coming from the south-east region of Brazil (Port of Paranagu and Port of Santos) is approximately 2,000 km; approximately 1,000 km for those coming from Gois and Minas Gerais states and approximately 1,500 km for those coming from Itaqui Port. These large distances results in significant freight costs when compared to the distance for shipment of product from the Santana Project. 

 



https://www.newswire.ca/news-releases/mbac-announces-results-of-feasibility-study-for-santana-phosphate-project-513112571.html



Question is why didn't they sell it and use the cash to pay debts and ramp up Itafos? 

Santana wont be developed for years. It was was supposed to be in production in 2016! haha...One of many delusional, mis-representations by management. 

 

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