Following is information provided by Bluestar to KPC and are the views of Bluestar.
Bluestar sees production commencing at an initial production level of 600,000 tonnes MOP from the
Sylvenite resource base, completed in 3 years (Phase I), and increasing to 1,200,000 tonnes of MOP
per year over an additional three year period (Phase II). It is estimated by Bluestar that the total
investment would be approximately US$640 million generating an estimated annual revenue of
US$237 million with annual gross profit of US$104 million, delivering a 16.8% return on investment, at
current potash prices.
Additionally, Bluestar forecasts production of SOPM fertiliser ultilising the polyhalite resource within
the deposit. Initial production would be at a rate of 1,200,000 tonnes of SOPM fertiliser per year, completed in 3 years (Phase I), which is envisaged to double to 2,400,000 tonnes over a following three year period (Phase II). With total investment as estimated by Bluestar at US$1.36 billion which
is forecast to generate an average annual revenue of US$784 million with average annual gross profit
of US$495 million, which sees a 36.9% return on investment.
KPC Price at posting:
26.0¢ Sentiment: Hold Disclosure: Held
