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Danakali gets ready for London Stock Exchange listing

The company’s potash project has an ore reserve of 203 million tonnes of contained SOP equivalent.

LSE board
SOP is a specialty fertiliser for modern agriculture

Danakali Ltd (ASX:DNK) is expected to mark an important milestone by starting to trade on the London Stock Exchange (LSE) main market from 24 July 2018.

The company is focused on the development of the Colluli Potash Project in Eritrea.

Danakali’s shares will continue to remain listed on the Australian Stock Exchange (ASX).

READ: Danakali signs offtake deal for full production from Colluli Potash Project

Danakali’s strategy is to become a leading Sulphate of Potash (SOP) producer through the development of the Colluli Potash Project.

The project represents one of the lowest cost, shallowest and most advanced greenfield SOP development projects globally.

LSE listing provides access to more investors

Danakali executive chairman Seamus Cornelius said: “We are delighted to announce our formal intention to list on the LSE.

“This has been a key strategic objective for us this year, along with the signing of the offtake agreement with EuroChem and the completion of the FEED study.

“The LSE listing provides us with additional access to sophisticated investors in London and internationally with a strong appetite for advanced stage development projects and a good understanding of the African mining and resource environment.

WATCH: Danakali Limited to begin trading on London's Main Market later this month

“Danakali presents an attractive investment opportunity through providing exposure to one of the most advanced and economically attractive SOP projects globally with a post-tax project valuation of US$902 million and IRR of 29.9% for Modules I & II, expected first quartile operating costs, industry leading capital intensity, and an almost 200-year mine life. The Colluli deposit is unrivalled in the SOP industry.

Long-term reliable supply of premium fertiliser

Cornelius added: "We, and our partner ENAMCO, are excited to be progressing the development of this world-class project, and delivering a long-term and stable supply of premium fertiliser for years to come.

“It also promises to be a major contributor to the Eritrean economy through exports, employment and skills. We look forward to bringing Colluli into production, and building value for our shareholders and stakeholders."

Quick facts: Danakali Ltd

Price: 0.56 AUD

ASX:DNK
Market: ASX
Market Cap: $178.48 m
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