Aguia (ASX:AGR) will be turning on the processing plant at its Três Estradas phosphate project in Brazil with the aim of starting production by mid-2026 to then ramp up to full capacity in 2027.
Speaking to Mining.com.au, non-Executive Chairman Warwick Grigor says 2026 is shaping up to be a transformational year for the company as it refines its growth strategy with a “work smarter, not harder” conservative approach.
The company is eyeing cashflow opportunities and is actively considering paying dividends to shareholders amid its renewed focus.
Mine services and logistics contractor Contrasapper is nearing completion of the mine implementation plan at Três Estradas. Drainage systems for the sump area at the end of 2025 were finalised, and the upgrade of 9km of municipal road access has also been completed.
“Remember, there’s two selling seasons for the phosphate – May, June, July, then November, December, January. What you have to do is build up your stockpile and sell it in those periods. So your cash flow is chunky twice a year,” Grigor tells this news service.
“There’s always a chance to sell some in between, but the majority of your sales will be in those selling seasons. By this time next year, we’ll be at full capacity and we’ll be selling the product, and we’ll be getting ready to double production again, which might take six months of putting in another rotary kiln so that by maybe September quarter ’27, maybe we commission that.”
At that stage Aguia’s cash flow could double to $40 million a year with the additional $20 million only costing it about $5 million to generate.
Grigor tells Mining.com.au while Aguia has gold projects in Colombia, despite the ever-increasing gold price “there’s nothing in the share price for the gold”.
“It’s all about the phosphate. The phosphate selling on a prospective cash flow multiple at one or two times, which is very cheap. Anyone who wanted to sell the shares who are disappointed in the gold, the chances are they’re gone,” the non-Executive Chairman says.
“But we are fortunate that we have such a good project in phosphate that we can restore the value. When I got involved in the company, it was about one cent per share. It’s now twice that.”
At the time of writing Aguia’s share price was sitting at $0.019.
Três Estradas progress
Progress across all workstreams is advancing to plan, budget, and timelines in order to start mining operations at Três Estradas in March 2026 and processing at the DB plant by the middle of the year.
Grigor says he’s been encouraged by the growing base of offtake volumes of Pampafos, which is held under letters of intent as local demand continues expanding. Aguia has signed seven letters of intent to sell 54,000 tons of Pampafos in Rio Grande do Sul and Uruguay.
Uruguay is smaller than Brazil and focuses on high-quality food production, while Brazil is known for its large-scale agribusiness. Uruguay strategically sources natural inputs like Pampafos to excel in the premium organic food market.
The Pampafos product has received approval from the Ministry of Agriculture (MAPA), but before the registration certificate is issued, MAPA technicians must inspect and approve the processing facility once the final upgrades are finished and the mining license is granted.
After these steps, MAPA will visit the plant prior to granting the certificate. Previously, MAPA inspected the facility and registered the Dagaberto Barcelos Limestone Sulphur Fertilizer product in 2018.
Meanwhile, environmental consulting firm ABG is providing environmental monitoring services in accordance with the environmental license. These services include air quality data collection, surface and groundwater quality assessment, vegetation suppression oversight, and the monitoring and health evaluation of local fauna.
Environmental monitoring will continue for the duration of the project. The initial data required for reports to be submitted to Fundação Estadual de Proteção Ambiental (FEPAM) will be finalised alongside the aforementioned civil works, with final data submission scheduled for January.
This will conclude the application process for the operating license. Given the timeframe required for Fepam’s analysis of the report, Grigor anticipates that the operating license will be issued in March. Upon issuance, mining operations will begin to establish the initial stock required for launching the Pampafos production facility.
The commissioning and formation of this initial stock are anticipated to occur during March and April, with the first product being available to customers within months.
Write to Adam Orlando at Mining.com.au
Images: Aguia
