Aguia Resources Limited (ASX: AGR) is a company from the metals and mining sector engaged in the exploration, development and investment in the resources sector in Brazil. On 1 April 2019, Aguia Resources Limited shared an investor presentation where it highlighted that Derisked phosphate project is advancing towards production. The company has made new copper discoveries.
The presentation also covered the achievements of the company from 2017-2019.
- February 2017 - The company discovered a new mineralized zone at Três Estradas.
- March 2017 - Três Estradas was named as Priority Project by State Government.
- June 2017 - The company reported a significant reduction in the operating expenditure and capital expenditure.
- July 2017 - The company got listed on TSX Venture.
- September 2017 - The company opened an office in Lavras do Sul. During the same period, New resource for Três Estradas; 83MT M&I 22MT was inferred.
- October 2017 - The pilot plant testing witnessed improved recoveries.
- February 2018 - A new copper zone was discovered at the Rio Grande do Sul.
- March 2018 – The BFS for Três Estradas got completed.
- April 2018 - A 6 km copper anomaly was identified at the Big Ranch.
- August 2018 - There were gold findings in gossans at Big Ranch.
- October 2018 - The company initiated the Scout drilling at Big Ranch.
- February 2019 – The company acquired the Andrade Copper Project.
- March 2019 – The company provided the Maiden resource estimate for Andrade Project.
The presentation also covered the phosphate forecast where it highlighted the 25% grade of Moroccan P2O5 vs planned Três Estradas grade of 32%. On a global scale, the demand for phosphate is strong and less volatile. In 2022, there is a possibility of a slowdown in the new capacity and based on the supply adjustments there might be a tighter market condition.
Since 2000 till 2018, the company has reported a CAGR of 5.7% demand of the Brazilian phosphate. The key drivers of the success factors for Brazilian phosphate producers included the Freight advantage into local growth markets, the competitive operating costs, sound market strategy followed by the higher purity.
13% of the demand for Brazil Phosphate is from the North and Northeast region of Brazil. From the Midwest, the demand for Brazil Phosphate is 39%, 18% from the Southeast and 30% from Southern Brazil.
The presentation also covered the Três Estradas phosphate project where a total life of mine was estimated to be 16 years phosrock mining plus 20 years aglime sales. The project reported gross revenue of US$1.65 billion, with an EBITDA of US$1.08 billion and a free cash flow of US$850 million. The project is located in southern Brazil in the State of Rio Grande Du Sol and is on the path to production. In the first 4-5 years of production, the company will be focusing on shallow high-grade oxide in the first 25 to 30 meters from surface. The Bankable Feasibility Study for the project demonstrates that the project is technically and economically feasible.
Aguia has stakes in 52 tenements, and it has acquired 8 for a total of 86,187 hectares (861km2) within the Rio Grande copper belt. The company’s recent acquisition of Primavera Project claims included the Andrade copper occurrence.
The presentation also highlighted the completion of Big Ranch initial scout drilling. The company is advancing its exploration at the Canhada Target.
On 1st April 2019, the company announced closing of oversubscribed and premium-priced private placement. The company has successfully raised A$874,708.44 by issuing ~7.29 ordinary shares at a price of A$0.12. In addition, as stated by company’s MD in the announcement, members of senior managers will also be providing additional funds through a loan facility which will be convertible to shares upon shareholder approval.
The funds raised from placement will be utilized for Rio Grande Copper exploration, environmental permitting of Três Estradas, acquisition payment for copper and phosphate properties, working capital purposed and balance sheet strengthening.
The securities were suspended from trading on 29 March pending this capital raising announcement. The securities resumed trading on ASX on 1 April 2019 post the announcement release. By the end of the trading session on 1 April 2019, the closing price of the stock was A$0.135, up by 48.352% as compared to its previous closing price with daily traded volume of 1,496,247 shares.
Today, 2 April 2019, the stock is trading 14.82% down at A$0.115 (As at 1:55 PM AEST).
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