DAPR marketingWhile we wait for the PFS (scheduled for end-of-2015? update on timeline?), thought the following should be highlighted from FCV news releases. Your thoughts on the potential for rapid move towards actual sales of DAPR, and likelihood of successful S American and N Zealand marketing 'investigations' before/after the PFS? If these paragraphs were specifically included in summer 2015 news releases, maybe we would expect there to be positive news coming along with the PFS, or soon after? If they can go from PEA to PFS & an income stream sales in the near future, that's a game-changer, in my opinion. As we've joked, shareholders can help shovel if it gets the phosphate moving and sold!! In my opinion, the move from PEA to PFS was a key sign that there is 'good' news on the horizon, but then the 12c private placement sure took the wind out of the hopeful momentum sails.
From September 2015 PFS update news release:
"Focus is investigating local markets in Latin America for the sale of RPR product from the Bayovar 12 concession. Preliminary visits have been undertaken to Brazil and Argentina to talk to fertilizer consumers and market intelligence groups. Extensive testwork has been completed on the effectiveness of Sechura RPR as a direct application fertilizer on different crops and soil types. Both the International Fertilizer Development Center (IFDC) in the US and the New Zealand Ministry of Agriculture and Fisheries have carried out research into its use on a variety of soil types and crop species. One of the key findings from the New Zealand work was that the ongoing use of RPR produces a reservoir of residual phosphorus in the soil, due to the build-up of reserves of slow dissolving RPR over the first few years, after which the release-rate of phosphorus comes into equilibrium with the application rate. This 'residual effect' provides a major income benefit to farmers during periods when lower farm incomes restrict fertilizer inputs. Sales of RPR in New Zealand reached 150,000 tonnes per year in 2005, some of which was Sechura rock phosphate from Peru. In 2015, exports of unground 22-24% P2O5 RPR from the Sechura district to Latin America and New Zealand have yielded prices from US$124 to $163/t FOB. Focus is actively investigating exporting its potential product to New Zealand in addition to South and North American markets."
From July 2015 "PEA transitioned to PFS" news release:
"Focus's market research on potential markets for DAPR has shown that a substantial demand likely exists in South America and elsewhere for direct application, reactive phosphate rock. DAPR sells at a premium price to acidulation concentrate. Discussions with potential buyers of the DAPR product have been encouraging enough to support the change of scope from a PEA to a PFS, modified to focus solely on the initial production of 300KT per year of DAPR."