Verde AgriTech PLC said Nov. 27 that a pre-feasibility study for the phased expansion at its Cerrado Verde potash project in Brazil estimated an after-tax net present value of US$1.98 billion, using an 8% discount rate, internal rate of return of 290% and a mine life of 36 years.
The study considered the production of 600,000 tonnes per annum of its Super Greensand fertilizer product in the first phase, reaching 25 million tonnes per annum in the third phase of the operation.
Total CapEx was pegged at US$369.5 million, while capital requirement for the first phase was estimated at US$3.05 million. Sustaining CapEx was projected at US$222.6 million.
Operating cost will come in at US$14.53, US$6.77 and US$7.92 per tonne during the first, second and third phases, respectively.
The study results incorporate proven and probable reserves of 777.28 million tonnes grading 9.78% potassium oxide, using 8.50% potassium oxide cutoff grade.
A long-term potassium chloride price of US$250 was used as a reference price for Super Greensand fertilizer product, based exclusively on its potassium content, despite its other nutrients and benefits.
