My Favorite Quotes from a Great Presentation The replay of the presentation is now available online for anyone who missed it. https://presentations.investormeetcompany.com/investor-meet-company/GENSOURCE-POTASH-CORPORATION-Leading-the-Way-to-Sustainable-Food-Security
From Mike:
“This is an industry that you really want to be in.”
“The project is fully licensed. It’s ready for construction. Call it shovel ready if you like.”
“The project team is actually ramping up right now as we speak, getting ready for final procurement of long lead items and starting to get geotechnical work done on the plant site and get ready for project kickoff later this summer.”
“There’s a number of paths for Gensource to grow strategically. The first path of course is to simply add more modules to the Tugaske Project, to KClean Potash. HELM has already expressed interest in that. So it’s a modular system. We simply add 250,000 tons as we go. The second way is to create new projects that Rob discussed. In our existing lease areas, we have space for more than a dozen of these modules, each of them lasting more than a century. So the resource is not constraining. Under our business model, the trigger is to find the right off-take partner who is going to deliver this product to an identified market, that doesn’t cannibalize any of our other markets, and then to progress with a structure very similar to what you saw for the KClean Potash Corporation structure. The third path to growth for Gensource is what we call it “taking it on the road.” There’s a number, for those of you who follow the potash industry over the decades, there’s a number of resources around the world in Africa, South America, Central America, Southeast Asia that are very close to high consumption market areas. Those are well known, they’ve been studied many times over the years, but they’ve always been found to be uneconomic under the old models of multi-million ton mega-mine production scenarios. We’re of the view that our technologies can be brought to those smaller deposits to make them viable……We are of the view, not to take it too far, but we are of the view is that what you are seeing here is the beginnings of the next major fertilizer producer starting in North America. We start with Potash (MOP), we start to look at broadening the range of potassium products to SOP and NOP (Nitrate of Potash) and you start to broaden that product range and increase your tonnages, and this is how it looks at the beginning.”
“This is the future of the industry, and we look forward to exciting things ahead and invite you to join us on this journey.”
From Rob:
“We do have continued interest in other projects directly, very similar to a structure we have with HELM. We’re very careful not to cannibalize our relationship with HELM, and that you know, interested parties that are approaching us, and again, there’s no shortage of interested parties wanting to have and wanting to secure their direct supply of potash around the world. A lot of the interest is off-shore. Are as a result, we are preparing ourselves for the future, in the expectation of multiple projects going forwards.”
“For regulatory purposes in a public forum, we’re precluded from providing too much information currently. So suffice to say, we are on our last mile of financing for the project, and we have full expectations of having that completed before Spring, and construction for Summertime…..Stay tuned for future news releases that we will be providing, and updates that are forthcoming.”
From Alton:
“The 2 numbers to really focus on here, other than the CapEx, is the second line (the Cost Overrun Account of $40mm) and the Project Contingency of $34mm. Those together make up $74mm of cash reserve that we have to fund any cost overruns. If, as expected, we come close to our capital cost on the project, the $318mm, anything that’s left from that $74mm cash reserve, can be used for any ongoing potential reserves that are required, operating reserves for an operational basis, it can be used for expansion capital on this module, or the next one, and it can also be returned to equity.”