Aguia (ASX:AGR) show fertile phosphate economics

Aguia Resources’ updated Bankable Feasibility Study has confirmed robust economics for its wholly owned organic phosphate project in the Lavras do Sul municipality of southernmost Brazil.

The project now has a proven capability of producing 316,000 tonnes of organic phosphate a year across an 18-year mine life, bringing in an average EBITDA of $22.1 million for an internal rate of return of 54.7 per cent and payback in under three years.

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AGUIA RES FPO [AGR]

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Aguia Managing Director Dr Fernando Tallarico said the results reaffirmed superior project economics.

“We believe that the investment which the company has made in agronomical testing over the past 3
years and more has established the efficacy of our phosphate fertiliser as a truly unique organic
product,” he said.

“In addition to phosphate, it contains magnesium, calcium and a range of micronutrients
essential for plant nutrition. We believe its potential market reach in these times holds significant value for shareholders.”

At the project’s core is producing organic fertiliser by mining only the saprolite, which boasts a high average grade of 8.8 per cent phosphorus pentoxide — across a deposit capable of meeting a tenth of demand from a fully import-dependant 300km surrounding radius.

After long relying on imports, Brazil’s federal government moved to reduce fertiliser dependency and claim its sizable reserves for one of the world’s fastest-growing agricultural sectors, a directive somewhat hindered by the nation’s complicated legal system.

Aguia is subject to a public civil action suit but seems confident in settling soon and is actively preparing for construction to begin as soon as the case is resolved.

AGUIA RES FPO [AGR]

Sector: Basic Materials

Industry: Other Industrial Metals & Mining

Employees:

Aguia Resources Limited engages in the exploration and development of mineral resource projects in Brazil and Colombia. It primarily explores for phosphate, copper, gold, zinc, and silver deposits. The company holds various interests in the Três Estradas Phosphate project and the Andrade Copper project in the state of Rio Grande do Sul State, Southern Brazil. It also holds interests in the Santa Barabara Gold project the northern tip of the Serranía de San Lucas, Colombia; El Dovio property located in Western Colombia; and the Atocha project located in the colonial era Santa Ana-Frias-Mariquita, Colombia. The company was formerly known as Newport Mining Limited. Aguia Resources Limited was incorporated in 2007 and is based in Porto Alegre, Brazil.

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