Aguia Resources (ASX:AGR) has released an economic study of the Tres Estrades Rock Project in Brazil after revising the phosphate price to $200 per tonne from the previous estimate of $153, first outlined in the February study.
The updated phosphate price and modelled earnings before interest, taxes, depreciation, and amortisation (EBITDA) according to Aguia, represents an increase from the previous study’s guide of between $158 million and $171 million to now sit between $440 million to $444 million, indicating a 73% increase.
Executive Chairman Warwick Grigor describes the Tres Estrades Rock Phosphate project to potentially be “exceptionally profitable at recent phosphate prices”.
“The Tres Estrades Rock Phosphate Project is making steady progress towards achieving first production in March/April next year, enabling initial sales in the middle of 2026,” Grigor says.
“It is technically very simple, with the process involving free digging, drying and minor crushing to achieve an environmentally friendly product for direct application to pasture crops, amongst other uses.
“Capital expenditure is minimal due to the availability of existing treatment facilities. It promises to be an important source of cashflow and profitability, according to economic studies.”
Aguia has said phase one intends to source 100,000 tonnes per year from an open pit before expanding to a 300,000 tonne output.
Reactive natural phosphate was considered in the study to host a minimum grade of 12% phosphorus pentoxide, while mixed natural fertiliser added to the plant was considered to host a minimum content of 6.5% phosphorus pentoxide and 2.5% sulphide.
The company predicts the plant may be capable of producing up to 50% more ore to bolster total production to 150,000 tonnes each year in the first instance.
Aguia also deployed five new operational alternatives under this evaluation to determine the most practical solution to supply the equipment required, including purchasing and leasing of material, as well as engaging with contractors as options.
Phosphorus is the elemental form of phosphate, which transitions after engaging with oxygen and water.
Trading Economics reports the spot price of phosphorus at ¥1,025 ($215) per tonne as of 16 September, representing a 4.63% decrease for this year to date.
Write to Maddison Elliott at Mining.com.au
Images: Aguia Resources
