Millennial Potash Corp MLPNF

MLP Research Update

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Fundamental Research Report Update: $MLP #Potash

https://cdn-ceo-ca.s3.amazonaws.com/1j471vq-Millennial%20Potash%20-%20May%202024%20-%20Update.pdf

Highlights:

- A Preliminary Economic Assessment (PEA) on the Banio potash project in Gabon, Western Africa, returned robust economics, with an AT-NPV10% of US$1.1B, and a high AT-IRR of 33%, using US$387/t granular Muriate of Potash (gMOP) vs the spot price of US$305/t. MLP is trading at just 1% of the AT-NPV10%.

- The project can be advanced to production within three to four years. We believe Banio stands out among undeveloped potash projects with its comparatively low initial CAPEX of US$480M, and OPEX of US$61/t, attributed to its amenability to solution mining.



- We believe there is significant resource expansion potential as the current estimate only covers 1.5% of the project area. MLP is aiming to complete a resource update in H2-2024.

- The target markets for Banio’s potash are Brazil and Africa. Brazil imports 95% of its potash demand from Canada, Russia, and Belarus. - Potash prices are down 22% YoY, but up 11% QoQ, to US$305/t vs the 15-year average of US$302/t. With fertilizer prices stabilizing, we are cautiously optimistic, and anticipate a recovery in demand in 2024, driven by increased spending by farmers.

- Upcoming catalysts include project financing, and an updated resource update.