Agrimin (ASX:AMN) is conducting a strategic review in regards to options for its Mackay Potash Project in Western Australia, in light of the existing capital markets environment for Australian-domiciled sulphate of potash projects.
The company intends to further reduce Mackay Project site activities, with limited work programs now planned for 2025. The company will also implement additional operating and corporate cost reduction initiatives.
Agrimin, which has a market capitalisation of $49.7 million, will also identify and evaluate options to maximise long-term risk-balanced value, including ongoing independent advancements, joint ventures, outright sales and tenement restructuring.
Non-executive Chairman Lee Bowers says the company believes these actions allow Agrimin to identify and pursue the optimal pathway with respect to the Mackay Project in this environment.
“In parallel, we are structuring the business to be leaner, run more cost efficiently, and protect and foster the underlying value that also resides in Agrimin’s 40% shareholding in Tali Resources,” Bowers says.
In light of further scaling down activities at the project and in support of cost reductions, CEO Debbie Morrow will step down from her position effectively from today.
Bowers adds that Morrow has been “instrumental” in Agrimin recently receiving Western Australian state environmental approval for the Mackay Project.
Further, COO Michael Hartley has been appointed as the company’s executive director as of today.
SOP is low chloride, premium potash fertiliser considered essential for high-value chloride intolerant crops such as fruits, vegetables, and tree nuts.
According to SOPerior Fertilizer, global fertiliser demand is expected to increase due to world population growth accompanied by decreasing arable land per capita, changes in diet, and growth in alternative fuels which use crops as feedstock.
China is the largest consumer of SOP accounting for over 45% of the world’s demand.
Agrimin is a Western Australia-based minerals company focused on the Mackay Potash Project which contains the world’s largest known mineral resource of brine-hosted SOP, totalling 123 million tonnes of SOP.
Write to Aaliyah Rogan at Mining.com.au
Images: Agrimin
