Aguia Resources (ASX:AGR) has stockpiled around 22,680 tonnes of pre-processed phosphate ore and secured potential orders totalling approximately 9,979 tonnes across five customers.
The stockpile, which holds a gross market value of $5 million, is stored at the company’s blending facility 40km from the mine site. An additional 1,600 tonnes of processed ore is also available for sale at the Caçapava plant, which operates under a separate licence.
At current production rates of 4,000 tonnes per month, Aguia says inventory is expected to support sales for six months.
Local bank Sicredi has also approved credit facilities for prospective customers, with potential orders ranging from 2,000 to 3,000 tonnes each.
Additionally, the company expects to commission a 25kg bagging machine by mid-October. Meanwhile, it confirms small-volume sales continue on a cash basis.
Aguia has also established a branch in Uruguay and expects Pampafós to be registered by the country’s Ministry of Livestock, Agriculture and Fisheries by mid-October.
Managing Director and CEO Timothy Hosking says Aguia is ‘encouraged’ by the ‘strong’ producer engagement across southern Brazil and Uruguay, as well as the steady demand it is seeing in the soybean and rice markets.
“Aguia is proactively managing the seasonal effects of El Niño and current credit constraints, while advancing initiatives that support broader market access,” Hosking says.
“The planned refurbishment of our 25kg bagging machine is expected to open new sales channels with tobacco and cattle producers and strengthen the reach of our farm-supply retail network.”
Aguia notes that soybean and corn futures are expected to rise by 30% ahead of the Brazilian harvest.
Business as usual amid legal challenges
The company is facing legal challenges after the Federal Regional Court for the 4th Region declared its Três Estradas Phosphate Project environmental licence invalid on 15 September.
“The adverse decision of the Federal Regional Court is concerning and appears inconsistent with the reasoning expressed during the earlier phase of the appellate proceedings,” Hosking notes.
“Justice Roger Raupp Rios stated that the licence would be annulled if operations had not commenced. The company provided the court with evidence that operations had commenced, including the relevant operating licences and detailed information on local employment, ore mined, and the environmental risks of halting the project.
“In the company’s view, this evidence was not adequately considered.”
Aguia’s legal advisers have confirmed the company will be filing a motion for clarification. That said, Aguia stresses it does not expect the decision to interrupt operations.
Aguia Resources is a multi-commodity explorer and developer focused on gold projects in Colombia and phosphate assets in Brazil.
Write to Paula Fabe at Mining.com.au
Main image: Aguia Resources
