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Aguia Resources (ASX:AGR) Hitting it Big with Exciting Project Prospects

Summary

  • Aguia Resources shares exhibited impressive momentum, with the stock price almost doubling in November 2020. 
  • The Company with significant advancements at TEPP Phosphate Project is positioned well to capitalise the encouraging market potential. 
  • Phosphate fertiliser has significant demand in Brazil which is expected to grow further in the coming years. 
  • The Company is also progressing Andrade Copper Sulphate Project

The shares of Aguia Resources Limited (ASX: AGR) continued to buzz with an upbeat momentum posting a return of over 93% during November. AGR stock last traded at $0.087 on 30 November 2020. AGR shares are trading at the same price of $0.087 on 16 December 2020 (AEDT: 11:56 am)

It appears that the recent developments and the lucrative market opportunities around the Company’s project portfolio have been some of the significant drivers, attracting interests of the investors. AGR has been committed to fast-track the development of its key agribusiness projects, located in Brazil’s the Rio Grande do Sul (RS State). Três Estradas Phosphate Project (TEPP) and the Andrade Copper Sulphate Project are included in this push development.

At the same time, the recent developments at Aguia’s project pipeline have panned out well, bringing it closer to the production, slated for Q4 2021 (TEPP) and Q4 2024 (Andrade). While the exciting market potential of the agricultural products further scales up the appeal of the projects. 

READ MORE: Aguia Resources’ (ASX: AGR) Making Remarkable Headway at Três Estradas Phosphate Project

Let us skim through some of the lucrative opportunities boosting the potential of agri-projects of Aguia Resources. 

High Domestic Demand for Phosphate Fertiliser

Demand in Brazil

TEPP phosphate project is situated in the most southern state of Brazil, which is known for its pro-agriculture and mining landscape. The demand in the country has increased two-fold since 2000. The increase in the harvest land area and surge in the application rates of fertilisers have served as the demand catalyst. Meanwhile, the world’s largest agribusiness exporter is anticipated to double by 2024.

Source: AGR Presentation, 20 November 2020

TEPP project, therefore, sits on a sweet spot with encouraging market potential in Brazil, making its product a right commodity at the right place.  

Demand around the TEPP Site

RS State is entirely dependent on export to fulfil its phosphate demand. Significantly, there is enormous local usage for the fertiliser with 80% of the total demands in the RS state coming from soybean and rice crops producers. Moreover, the presence of more than 3.5Mha of soybean and rice crops being planted within 300km of the TEPP positions Aguia Resources well to leverage the high demand. 

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

TEPP Phosphate Fertiliser Addressing Sustainability Concerns

The sustainability associated with agricultural chemicals and nutrients is one of the critical issues that has gained global interest in the past few years. The TEPP project and its product meet the sustainability standards ensuring its social, economic, and environmental viability. 

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

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

Global Opportunity for Copper Sulphate

Apart from the TEPP Phosphate project, the Company is also advancing Andrade Copper Sulphate Project in RS State. Copper sulphate is primarily used as fungicides in agriculture along with usage in the treatment of copper-deficient soils and animal nutrition. 

As per Global Copper Sulphate Market 2020-2024 report by Technavio, global annual consumption of Copper Sulphate, which in 2019 was around 296,000 tonnes is anticipated to grow to over 377,000 tonnes in 2024. 

The project with expansion potential has simplified environmental licencing while Copper Sulphate commands an attractive sales price of $4,000 per tonne. 

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

Bottomline

The projects are at a vantage point owing to the significant demand of the agribusiness products, which are showings positive growth trend both in Brazil and on a global scale. Meanwhile, the sustainability components strongly integrated with the project and its products further magnify the market prospects. 

[All currency is in AUD unless stated otherwise]


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