London Stock Exchange today welcomes Eritrean Danakali Limited
London Stock Exchange today welcomes Danakali Limited (ASX: DNK / LSE: DNK) (Danakali), the potash company focused on the development of the Colluli Potash Project in Eritrea, to trading on the Main Market. Danakali shares will be admitted to the Standard Segment of the Official List of the Financial Conduct Authority, at 8am on Tuesday 24 July 2018, while remaining listed on the Australian Stock Exchange (ASX).
Danakali’s core strategy is to become a leading Sulphate of Potash (SOP) producer through the development of the world-class Colluli Potash Project, located in the Danakil Depression region of Eritrea, East Africa. SOP is utilised on high-value, chloride-sensitive crops such as fruits, nuts and coffee plants and commands a substantial premium over the more widely available Muriate of Potash (MOP) that has a high chloride content.
A 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), the Colluli Project represents one of the lowest cost, shallowest and most advanced greenfield SOP development projects globally. It will be developed using a modular approach, with production from Module I expected to produce 472ktpa SOP, and Module II will increase total SOP production to 944ktpa, in a global market of over 7Mtpa. This LSE listing is another recent milestone for the Company, after announcing in June that EuroChem will take, pay, market and distribute up to 100% (minimum 87%) of Colluli Module I SOP production.
Danakali Executive Chairman, Mr. Seamus Cornelius, commented: “We are delighted to be celebrating Danakali’s entry to the London Stock Exchange. Our LSE listing provides us with additional access to sophisticated investors in London and internationally with a strong appetite for advanced stage development projects and a good understanding of both fertilizer companies and the African mining environment.
“Danakali presents an attractive investment opportunity through providing exposure to one of the most advanced and economically attractive SOP projects globally with a post-tax project valuation of US$902M and IRR of 29.9% for Modules I & II, expected first quartile operating costs, industry leading capital intensity, and an almost 200-year mine life.”
Numis Securities are the Company’s financial adviser; the Company’s UK legal adviser is Memery Crystal LLP; their Australian legal adviser is Norton Rose Fulbright Australia; Eritrean legal adviser is Kebreab Habte Michael; CREST Depositary Interests are managed by Computershare; the Company’s reporting accountant is EY and the technical consultants are AMC Consultants; Instinctif Partners are IR/PR advisers to Danakali.