Date: Wednesday, 08 March 2017
Danakali (ASX:DNK) continues to attract broker’s attention as the company progresses the Colluli project in Eritrea. Baillieu Holst this time included the company in their Top Stock Picks for 2017.
In the note they also provide an economic and equity markets outlook, as well as key insights from their listed investment company coverage.
The following is an extract from the report.
Overview: DNK is proposing to develop Colluli, the lowest cost sulphate of potash (SOP) project in the world. Located in Eritrea, the project will be developed in two stages – firstly at 425ktpa, before expanding to 850ktpa.
We forecast that the project should be able to generate an operating margin of US$300+/t of product, excluding any co-products which may be produced.
Colluli has the potential to disrupt the SOP market and displace high cost capacity.......................
Continue to read in PDF Attachment below.........