RE:news outI think investors appreciate the communication. What do you want them to say?
They have a new experienced executive recently brought on board, it looks like they have negotiated quite a reduction in engineering costs and are looking to dramatically lower both CAPEX and OPEX through researching all legacy and newer solution mining concepts. There's actually a lot of detail in there.
Encanto adds Lively for mine project construction
2018-05-23 17:14 ET - News Release
Mr. Gary Deathe reports
ENCANTO POTASH CORP SUCCESSFULLY REDUCES PROJECTED ENGINEERING COSTS SIGNIFICANTLY TO PROPEL MINING PLAN
Encanto Potash Corp. has released its strategic plan to move the proposed potash solution mine project located on Muskowekwan First Nation land forward from today's current status to shovel-ready. With the recent addition of Richard Lively, Encanto has value engineered and identified the expected costs to be incurred over the next 16 months to bring the project to a construction start. The projected engineering cost to finalize the EIS, Feasibility Study, and complex Front End Engineering & Design will be $32 million, representing a 40% reduction versus previous estimates.
After Mr. Lively's experienced review of the upcoming work, while performing a deep comparison to recent domestic Potash projects over the last 5 years, the Company expects it can maintain a lower CAPEX cost than previously expected while protecting the project versus costly overruns and work duplication. Richard states "I have reviewed both classical and the newest of extraction technologies for solution mining and feel confident in the present strategy to deliver both a CAPEX and OPEX that will allow for margin elasticity." In addition to the proper solution mine design, we are actively reviewing the vital components of the project such as optimal power generation strategies, shipping logistics, as well as water infrastructure cost reductions through additional First Nation partnerships. For increased revenue streams, we are exploring the possibilities of exporting the expected salt by-product for various applications from consumer edible to industrial road salts.
The expected decreased CAPEX cost will allow our junior mining company to be flexible with the tight Potash market throughout, servicing the 20 year 5 million metric tons per year off take demand signed with the National Federation of Farmers' Procurement, Processing, and Retail Cooperatives of India Ltd. In addition, Encanto has an agreement to provide 2 million metric tons of Potash for global distribution with the Metals Minerals and Trading Company of India, owned by the Government of India's Ministry of Commerce.