Millennial Potash: Heads Up
I am writing up an interview I did with Millennial Potash Director Farhad Abasov and doing the background research on MLP:AQL. I originally bought shares in the company when it was Black Mountain Gold. Normally, I would not have been happy had management switched from a gold project to a potash project; but in this case I was investing in management rather than a specific project.
Abasov has been a client of Motherlodetv.net since he helmed Allana Potash which was sold in 2015 for 170 million. His adventure in Argentinian lithium, Millennial Lithium, was sold last year for 491 million dollars. Abasov and his team are very good at finding, exploring and developing projects and they are brilliant at selling those projects forward.
What caused Abasov and his team to pivot away from their gold project was a terrific opportunity in potash in Gabon. The Banio Potash Project is located in the South West lower corner of Gabon, right on its border with Congo. The deposit is a continuation of the Congo Potash Basin.
The large property is road accessible and located near the small port city of Mayumba. Some drilling has taken place and potash bearing horizons have been encountered. Interestingly, there is an exploration camp, core and drill rigs located on the property.
Abasov told me that the plan is to fast-track the development of Banio. The potential for solution mining exists which allows for a modular approach to mining and a relatively low initial CAPEX. Add to that the fact Gabon is closer to Brazil, a major potash consumer, than virtually any other potash source.
Fast-tracking the project means getting a 43-101 Initial Resource Estimate out by mid 2023 with a Preliminary Economic Assessment to follow by years’ end. It is an ambitious timetable but Abasov has a track record of pushing projects forward.
Potash demand has increased steadily for years. Largely because more intensive agriculture depletes soils more quickly and potash and other fertilizers are needed to keep yields up. World supply, on the other hand, has been severely squeezed by the currrent Russia/Ukraine war. Russia and Belarus potash production has been removed from the world market. This leaves a 35% hole to be filled and potash prices have gone up nearly 30%.
Millennial Potash has a potentially very large potash resource but my investment is in the management rather than the specific project. Abasov and his team have proven that they can deliver on the key milestones in large scale projects. I suspect that the market will actually pay attention to the 43-101 and PEA and the value they demonstrate for the Banio Project.
[Update: Pleased to report that Farhad Abasov has been appointed Chairman of Millennial Potash.]
Disclaimer: This is not investment advice. I am not an investment professional. I am down about 30% at the moment. I will write about companies that I hold. I will disclose any holdings. Do your own due diligence. Do it hard. Call the CEO.
I currently hold shares in MLP:AQL and while I have no plans to sell anytime soon I reserve the right to take profits as they arise.