Phosphate Georgina Basin Phosphate Project
Legend International Holdings has announced an update on its Georgina basin phosphate project currently being developed near Mt. Isa, Queensland.
Melbourne, Australia – Earlier this year the company reported that positive discussions are still progressing with interested industry corporations for a potential strategic transaction relating to the development and financing of the phosphate assets. These discussions have advanced considerably in the last few months. The Company is dealing with multi‐national corporations that are conducting extensive due diligence. Although the negotiations are taking longer than expected the Company is confident that a deal will be completed as interest in the project remains strong.
Legend’s phosphate assets are of a high quality and size that has been demonstrated with the recent reporting of Proven Reserves. Phosphate deposits of this nature, in a stable legal jurisdiction, are unique and a rare opportunity given the current and future outlook for agricultural raw materials upon which food production is reliant. The global population has a critical need to have projects such as Legend’s phosphate project developed and producing fertilizers to meet the future demand. Phosphate fertilizer prices reflect the current supply and demand imbalance with Diammonium Phosphate (DAP) prices currently at US$660 per tonne (fob Tampa, FL). Recent 10 year forecast prices by CRU Group, London based commodity research unit (formerly British Sulphur Consultants), show that prices will remain strong for the foreseeable future. Using current prices the Project now has a forecast operating margin of over US$300 per tonne.