The Perth-based Agrimin Limited (ASX: AMN) is a fertiliser development company lately focussed on its wholly-owned Mackay Sulphate of Potash (SOP) project situated on the Lake Mackay in Western Australia. On April 3rd, 2019, Agrimin released a summary of the proposed funding for Tanami Road in the 2019–2020 Australian Federal Budget as announced on April 2nd, 2019.
Under the Australian Government’s Roads of Strategic Importance initiative, the Federal Government has announced to allocate $ 75 million to Tanami Road, which is the Western Australian section of the Alice Springs to Halls Creek Corridor.
The proposed funding is separate to the Company’s ongoing discussions with the Northern Australia Infrastructure Facility and will assist Agrimin as it aims to create a new long-term logistics chain through northern Australia. Besides, the upgradation of the Tanami Road will unlock the region for multiple users while supporting the development of Agrimin’s large-scale and long-life operation to export potash fertiliser via Wyndham Port to the world markets.
On March 28th, 2019, the company updated the market on its proposed logistics chain for the Mackay SOP project as it received all the data from the recent fieldwork programs and reported the commencement of the engineering design phase for road works for the Definitive Feasibility Study (DFS). The project is designed for an annual production target of 426,000 tonnes of SOP using a dedicated fleet of quad road trains and a product load-out facility at the process plant site. Discussions are underway to utilise the existing port facilities as well as develop new infrastructure to aid Agrimin’s planned ship-loading operations.
So far, the company has awarded a design package for the 385-km haul road to Coffey Services Australia. Moreover, a 205-km section of the existing Tanami Road is planned to be upgraded, the contract for which has been awarded to Greenfield Technical Services. Going forward in 2019, the company plans to undertake heritage surveys and progress negotiations for land access agreements during 2019. Preparations are well in place for a range of environmental surveys to take place during April and May 2019. Currently, it is liaising with the Shire of Halls Creek and the Department of Main Roads Western Australia concerning the road works.
For the half-year ended December 31st, 2018, Agrimin reported the loss after income tax of around $ 968,703, up on $ 330,033 recorded in the prior corresponding period (PCP) ended December 31st, 2017. At the end of the period, the net assets were valued at $ 27.29 million including net cash and cash equivalents of around $ 10.41 million (December 31st, 2017: $ 5.93 million). There were net cash outflows of $ 879,591 from operating activities on account of payments to suppliers and employees and around $ 4.14 million from investing activities including payments for exploration, evaluation, property, equipment and plant. Meanwhile, the financing activities contributed ~ $ 9.49 million to the net cash inflows with the proceeds from the issue of share capital.
To date, Agrimin has a market cap of AUD 92.13 million with ~ 170.62 outstanding shares. On April 3rd, 2019, the AMN stock price closed the market trading at AUD 0.560, edging up 3.704% by AUD 0.020.