elemental no ordinary explorer, page-14

needle, i remember comparisons being made as ELM's market cap overtook Mag's nearly 2 years ago from memory.

The market just never trusted Mag.

They have carnalite which is at best an impurity. It has a lower grade than Sylvinite and has magnesium in it which requires separation and then removal which adds to the Capital and operating costs. There is no need for a mining major to get involved with Carnalite when they can go for the purest Potash, Sylvinite. Why would they?

ELM'S Sylvinite purity is up around 95% which is better than the finest Saskatchewan ore as mentioned at the AGM I attended. Our ore has less than 1% insolubles so unlike Mag, tailings will not be an issue for us as the left over stuff is brine which the government has authorised can go straight into the ocean right next to our plant at the planned Tchibouti port. This equates to lower operating costs for us.

Our CAPEX is lower per tonne than the Canadians and because of our unmatched grades, quality of sylvinite, close to surface, close to port, cheap gas, plentiful water, excellent recoverability, excellent purity, close to target market etc our profit margins will be massive allowing for quick CAPEX payback.

Be careful with comparing market caps needle. We have the highest market cap of all Potash developers/explorers for many genuine reasons.