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Aguia Resources (ASX: AGR) Shares Riding High with Fast-Track Advancement of Phosphate Project

  • November 21, 2020 12:05 AM AEDT
  • Team Kalkine
Aguia Resources (ASX: AGR) Shares Riding High with Fast-Track Advancement of Phosphate Project

Summary

  • AGR share price edged up by a whopping ~35% on 20 November 2020 and closed at $0.093. 
  • Aguia’s Três Estradas Phosphate Project (TEPP) in Brazil has progressed significantly, achieving considerable milestones in a short period. 
  • The project site in Brazil, known for its agricultural resources exposes the project to significant Demand from domestic markets. 
  • Aguia Resources also holds extensive copper leases, which further adds upside potential to the Company’s exploration endeavours, thereby positioning AGR for early cash flow.
Gold MTF non-AMP

Aguia Resources Limited (ASX: AGR) is grabbing the limelight on the back of highly encouraging potential offered by its phosphate and copper sulphate projects. The share price of Aguia Resources marked an uptick of ~35% on 20 November 2020, closing at $0.093. The price momentum resonates the substantial progress of its phosphate project. 

Significantly, the Três Estradas Phosphate Project (TEPP) in Brazil has progressed through leaps and bounds, achieving critical milestones in a short time. 

Adding hues onto the rainbow, the lucrative market potential witnessed by the project makes it a highly attractive exploration asset for the Company. Aguia Resources also holds extensive copper leases, which further adds upside potential to the Company’s exploration endeavours, thereby positioning AGR for early cash flow.

Let us explore some key factors that are offering Aguia Resources strong competitive advantage and positioning it for early cash flow.

ALSO READ: Aguia Resources Advancing Well for Installation License; COVID-19 under control in RS State

Right Commodity at the Right Place

Aguia Resources has its pre-production copper sulphate, and phosphate projects. These projects are located in the Rio Grande do Sul, which is the southernmost state of Brazil. Meanwhile, the Company also has established its highly experienced in-country team in the Rio Grande do Sul’s capital, Alegre.

Aguia’s plan includes producing 0.3m tonnes of natural phosphate fertiliser- Pampafos annually from TEPP, which is expected to be brought in production by Q4 2021. The project site in Brazil, known for its agricultural resources exposes the project to significant Demand from domestic markets 

Kalkine Image (Data Source: AGR AGM Presentation, 20 November 2020)

The Demand for phosphate has increased by more than two times since 2000, due to an increase in harvested land area and fertiliser application rates. Significantly, Brazilian Phosphate Demand increased at CAGR of 5.7% between 2000 to 2018.

Robust TEPP Project

TEPP has a focus on the mining of the high-grade oxidised ore for the production of a Natural Phosphate Fertiliser (NPF). The project with the open-pit operation exhibits a low strip ratio of 0.49:1 and life-of-mine of 18 years. Furthermore, the projects require simple processing with only crushing and milling.

DETAILED DISCUSSION AT: Aguia Resources’ (ASX: AGR) Making Remarkable Headway at Três Estradas Phosphate Project

The strong project economics makes TEPP as a highly attractive exploration and endeavour for the Company.

Compelling Project Economics. Source: AGR AGM Presentation, 20 November 2020

The project meets all the Sustainability criteria owing to its social, environment and economic progress. 

ALSO READ: A Walk Through Aguia Resource’s Journey During the Current Year

A Glimpse at Aguia Copper Exploration Assets

Aguia’s Andrade Copper Sulphate Project (Andrade) meanwhile is also a low CAPEX and lower OPEX copper sulphate project offering the Company with a core copper project as well as fast track route into production, which is aimed by Q4 2024. 

The project area for Andrade is 861km2 of tenements permitted while 400km2 is under the application. Around 75% of the copper sulphate is used in agriculture and treating copper-deficient soils. 

Inferred Mineral Resource of Andrade project is 10.8 million tonnes with an average grade of 0.56% Cu and 2.56 g/t Ag. The project exhibits expansion potential and upgrades with additional drilling.

ALSO READ: A Year in Review for Aguia Resources, Major Developments at Phosphate and Copper Assets

Bottomline

The rich agriculture landscape offered by Southern Brazil puts the Company’s phosphate and copper projects at a lucrative spot to harness the growth prospects associated with the project. Meanwhile, TEPP development ramps up, exceptionally well financing, improving project economics, growing government support, and actively advanced copper projects are acting as multiple near-term value catalysts for the Company. 

[All currency is in AUD unless stated otherwise]

 

 


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