Aguia phosphate outshines imports in Brazilian | Australian Markets

Aguia Resources has struck fertiliser gold in southern Brazil, after new subject trials confirmed its homegrown natural phosphate merchandise rival the efficiency of top-shelf imported fertilisers, at a fraction of the price.

Since 2019, the company has been operating assessments with outstanding success on its 12 per cent high-grade phosphorus pentoxide product – dubbed Pampafos – at its Rio Grande do Sul-based operation.

The ASX-listed junior has now launched the outcomes of a two-year impartial subject trial on its commonplace 6 per cent grade Lavratto product. The company says the findings are a game-changer for Brazil’s phosphate-hungry agricultural heartland.

Conducted by famend agronomist Dr Felipe de Campos Carmona on the Integrar/Agrinova Technological Centre, the trial spanned each winter and summer season crop cycles. Phosphate was utilized to ryegrass and oats in winter, adopted by soybeans and corn in the summer season.

Aguia’s regionally produced phosphorus in contrast toe-to-toe with the likes of imported 32 per cent grade Moroccan phosphate, triple superphosphate and uber-high-grade 48 per cent monoammonium phosphate (MAP).

The trials proved the company’s merchandise match or outperform the yield outcomes of the established fertilisers.

In soybean crops, Aguia’s Lavratto topped the yield tables when utilized at 200 kilograms per hectare (kg/ha), outstripping even costly MAP fertilisers. The similar pattern appeared throughout successive ryegrass-soy and oat-corn crops. For corn, the best yields got here from a intelligent sequence of making use of Aguia’s Lavratto in winter, adopted by MAP in summer season.

Ryegrass responded notably effectively to Pampafos at a larger 200kg/ha utility, punching in dry yields above 8 tonnes per hectare. This is similar to Morocco’s phosphate and MAP, regardless of being a considerably lower-grade product.

The actual kicker, nevertheless, seems to be the associated fee to farmers.

Aguia says Pampafos will probably be marketed regionally for a retail price of simply $200–230 per tonne in comparison with more than $1000 for MAP – a fivefold price benefit, even earlier than factoring in freight prices.

Adding one other edge to Aguia’s product, the company’s mine-to-market provide chain is 2 kilometres from its processing plant, whereas overseas merchandise are shipped 300km inland from the Port of Rio Grande.

With phosphate manufacturing set to launch later this 12 months, Aguia doesn’t need to let the glint of gold in Colombia overshadow its rising Brazilian star.

Aguia’s current highlight has been fixed on fast-tracking manufacturing at its Santa Barbara gold project, nevertheless the company says its upcoming phosphate operation in Rio Grande do Sul may quickly develop into a second powerhouse, offering low operational risk and severe cashflow potential.

Aguia has pulled off a savvy transfer to fast-track its phosphate manufacturing with out breaking the bank. Four months in the past, the company secured a 10-year lease on the absolutely operational Dagoberto Barcelos processing plant, locking it in with a modest $43,000 month-to-month price and a one-off fee of simply $1.36 million.

The resolution to lease a phosphate processing facility somewhat than spend a lot more capital on a new plant will work effectively for shareholders. Aguia is making regular progress on changing into operational and the standard of the phosphate merchandise has been confirmed by this current check work.

The leased plant is rated to churn out 100,000 tonnes every year, and is already lined up for a collection of strategic upgrades that might triple capability to a hefty 300,000tpa. The intelligent workaround will enable Aguia to dodge a vital $26 million price tag for a standalone facility, which the company scoped in its 2023 bankable feasibility research.

The research painted a rosy image, tipping an annual EBITDA at $22M over an 18-year mine life, with a lightning-fast payback of 2.9 years.

Phosphate feedstock will initially come from Aguia’s flagship Pampafos deposit, which is a component of the Três Estradas project, about 100km from the plant. However, drilling is already in full swing at its Mato Grande and Passo Feio prospects, that are each a lot nearer to the ability. This ought to slash haulage prices and pump up revenue margins even additional.

With Brazil’s southern soils notoriously phosphate-deficient and 62 per cent of farmlands needing phosphate fertilisation to maintain industrial yields, Aguia could also be sowing the seeds for a profitable harvest for farmers – and punters too.

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