TIDMDNK
RNS Number : 5329R
Danakali Limited
30 October 2019
Announcement Wednesday, 30 October 2019
============= ===========================
QUARTERLY REPORT
For the period ending 30 September 2019
Danakali Limited (ASX: DNK, LSE: DNK, Danakali, or the Company)
is pleased to provide this quarterly update on the activities and
financial position of the Company and its Colluli Potash Project
(Colluli or the Project), located in Eritrea, East Africa. The
Project is 100% owned by the Colluli Mining Share Company (CMSC), a
50:50 joint venture between Danakali and the Eritrean National
Mining Corporation (ENAMCO). CMSC's aim is to become a leading
producer and exporter of Sulphate of Potash (SOP), the premium
potash type.
Highlights
-- Credit approval received for US$200M CMSC senior debt
facility[1]
- CMSC senior debt documentation well advanced through
significant lender engagement
-- Credit approval received for Colluli Power Plant[2]
- Afreximbank has approved a US$42M guarantee in support of
ISI's Colluli power plant
-- Significant progress on remaining project financing
requirements
- Strong engagement and detailed negotiations with potential
strategic parties
-- Project execution readiness fully defined
- DRA Global's EPCM contract reviewed and ready for
execution
- Mining services contractor negotiations held with target date
of March Quarter 2020 for contract execution
- Owner's Team composition confirmed including personnel from
Turner & Townsend
- CMSC Notice of Mine Development prepared for submission to the
Eritrean Ministry of Energy & Mines
- Parties proceeding to definitive CMSC senior debt
documentation and ultimately execution of the Facility
Key activities planned for the December 2019 Quarter
-- Finalise definitive CMSC senior debt documentation
-- Continue discussions with investors to close remaining
project financing requirements
-- Pending progress on project financing; commence project
execution and other in-country activities
- CMSC to submit the Notice of Mine Development
- EPCM commencement letter to DRA and Turner & Townsend to
commence project execution (EPCM Phases 1 & 2)
- Key hires and other in-country readiness activities
Financial position
-- Cash position of A$4.9M as at 30 September 2019
- Considered sufficient working capital to take the Company
through to commencement of project execution
Project
Project update - Owner's Team and DRA Global are ready
Danakali and CMSC are working with EPCM provider DRA Global and
Owner's Team support Turner & Townsend (multinational
professional services company) to ensure that an efficient start-up
can be achieved once project financing is confirmed. Danakali
Project Director, Tony Harrington, is based in Asmara to is
finalise preparations.
Once sufficient funding has been achieved, the Owner's Team and
DRA Global will commence project execution:
Phase 1
-- FEED reviewed by DRA Global
-- Activities undertaken by CMSC Owner's Team to optimise the
development path:
- Hire of Owner's Team (previously identified personnel)
- Relocation of the Colluli exploration camp to facilitate early
works
Phase 2
-- FEED updated by DRA Global:
- Capital re-estimated and schedule defined
- Develop further information required to complete detailed
engineering
-- Activities undertaken by CMSC to optimise the development
path:
- Undertake geotechnical test work
- Early purchasing of reverse osmosis equipment necessary for
early work activities
Final Investment Decision will be confirmed after completion of
EPCM Phases 1 & 2.
Logistics and other technical collaboration aspects with offtake
partner EuroChem, finalisation of other required operational
contracts and sub-contracts and corporate social responsibility
initiatives build-up will continue in parallel.
Project financing - US$200M credit approval received[3]
AFC and Afreximbank (the Mandated Lead Arrangers) obtained
formal credit approval for a US$200M senior debt facility (the
Facility) to fund construction and project execution for
Colluli.
The Facility, funded and underwritten equally by the Mandated
Lead Arrangers, includes formal approval of export credit support
from the Export Credit Insurance Corporation of South Africa SOC
Limited (ECIC). ECIC is South Africa's statutory export credit and
foreign investment insurance provider. This milestone transaction
will represent the first time they have provided export credit
support to a non-South African bank, highlighting Colluli's
potential to encourage investment in Eritrea.
"The Colluli project is not only high quality and high purity
but also shallow and easy to mine as well as easy to transport due
to its proximity to the coast. We are very proud to be supporting
Danakali."
AFC's Vice President of Investment, Begna Gebreyes[4]
The CMSC senior debt definitive documentation is materially
complete following regular engagement between CMSC, the Mandated
Lead Arrangers and respective legal counsel. The parties held
productive meetings in London in September and expect to meet again
in Asmara in the December 2019 Quarter.
The Company is currently pursuing a range of options for funding
the balance of the capital required to bring Colluli into
production, including advanced discussions with a number of
potential strategic investors who have expressed interest in
supporting the development of the Project. Standard Chartered is
acting as corporate financial adviser to Danakali, including with
respect to discussions with potential strategic investors.
The Company is aiming to commence project execution in 2019.
Power - Credit approval for Colluli Power Plant[5]
Afreximbank confirmed formal credit approval has been granted
for a US$42M guarantee in support of Inglett & Stubbs
International's (ISI) Colluli power plant (Guarantee). This
approval increases Afreximbank's participation in Colluli to
US$142M, demonstrating their confidence in the Project and comfort
investing in Eritrea.
ISI will utilise a Build Own Operate Transfer model and the
credit approval from Afreximbank is a significant step forward
towards ISI closing their project financing requirements.
The Guarantee is separate from CMSC's project financing
requirements and does not represent an increased
debt obligation for CMSC.
Mining Services - Negotiations continue towards contract
execution
Danakali Chief Financial Officer, Stuart Tarrant, and Project
Director, Tony Harrington, held multiple discussions with highly
credible mining contractors in Perth. Bids have subsequently been
received by the Company and are being assessed.
Execution of the Mining Services Contract is expected during the
March 2020 Quarter.
Eritrea - Positive geopolitical momentum continues
Positive progress continues in Eritrea and the Horn of Africa
following Eritrea-Ethiopia rapprochement and resumption of
diplomatic ties in 2018. Most notably, in early October, Ethiopian
Prime Minister, Abiy Ahmed, was awarded the 2019 Nobel Peace Prize
for his pursuit of democratic reforms and regional peacemaking
efforts. Mr. Ahmed was awarded the prize...
"...in particular, for his decisive initiative to resolve the
border conflict with neighbouring Eritrea,"
Chair of the Norwegian Nobel Committee that awards the Peace
Prize, Berit Reiss-Andersen[6]
In a statement, Ahmed's office said that...
"...this victory and recognition is a collective win for
Ethiopians, and a call to strengthen our resolve in making Ethiopia
- the New Horizon of Hope - a prosperous nation for all..."
and
"...ending the two-decade stalemate between Ethiopia and Eritrea
has opened up a new dimension of possibilities for cooperation
between the two countries."[7]
Antonio Guterres, the UN Secretary-General, hailed Ahmed's
leadership for setting a "wonderful example" for the international
community[8].
Eritrea-Ethiopia trade agreement under preparation[9]
-- Ethiopian Prime Minister, Abiy Ahmed, visited Eritrea in July
2019 for the second time since the relation between the two
countries returned to normalcy in 2018
-- Legalisation of trade relations between the two countries
will further strengthen the existing peaceful relations between the
two countries as well as providing economic benefits
-- Eritrea and Ethiopia have agreed to establish a joint
committee to oversee a range of agreements to be signed including
the trade agreement
"The Eritrean authorities have made considerable progress on
some development goals, notably in the health and education
sectors"
IMF Press Release[10]
Significant roadworks have commenced[11]
-- After the signing of the peace and friendship agreement with
Ethiopia, the Eritrean government is upgrading roads and other
basis infrastructure in the country
-- Improving connectivity internally and with Ethiopia, and
promoting trade
New ambassador of India to Eritrea[12]
-- Shri Subhash Chand, previously Deputy High Commissioner in
the High Commission of India has been appointed as the next
Ambassador of India to the State of Eritrea
-- Continues increased foreign interest in Eritrea since
rapprochement with Ethiopia
Corporate
Investor engagement
Presentations
Danakali's Chief Executive Officer, Niels Wage, presented at the
Proactive One2One Investor Forum in London in September 2019.
Presentation can be found here:
www.danakali.com.au/investor-relations/corporate-presentations
Danakali's Head of Corporate Development & External Affairs,
William Sandover, presented at the Proactive Investor Sessions in
Sydney and Melbourne in July 2019. Associated article:
www.proactiveinvestors.co.uk/companies/news/224178/danakali-primed-to-execute-world-class-colluli-sulphate-of-potash-project-224178.html
Videos
Mr. Wage provided a detailed company update to Proactive in
their London studios, August 2019: youtu.be/xOd3XZFv6N8
Mr. Sandover provided a brief company overview to Hot Copper in
Perth in line with the Africa Down Under conference, September
2019: youtu.be/YSorspFyEnA; and provided a detailed company update
at the Bell Potter Emerging Leaders Conference in September 2019:
www.belldirect.com.au/smarter/tv/video/danakali-bell-potter-emerging-leaders-conference/show/insights
Articles
Credit approval and Danakali's financing progress has been
covered by several news sources including the following global
media outlets:
-- Mining Review Africa:
www.miningreview.com/industrial-minerals/us200-million-secured-for-colluli-potash-project-in-eritrea/;
and
-- World Fertilizer Magazine:
www.worldfertilizer.com/potash/05082019/danakalis-colluli-potash-project-receives-credit-approval-for-senior-debt-finance/
A Paydirt article highlighted that Danakali will benefit from
optimal timing with respect to Horn of Africa geopolitical progress
and the strong platform that the EuroChem offtake agreement[13]
provides to finalise project financing. The article can be accessed
from the Company's website:
www.danakali.com.au/images/stories/media/2019/20190828_Paydirt_Danakali_finds_timing_on_its_side.pdf
Capital
Cash
Consolidated cash on hand was A$4.9M as at 30 September 2019.
Danakali considers that this cash balance is sufficient to take the
Company through to completion of Colluli project funding and the
commencement of project execution.
Securities
As at 30 September 2019, there were a total of 265,322,398 fully
paid ordinary shares on issue. During the September Quarter 2019,
the Company issued the following fully paid ordinary shares:
-- 900,000 shares on exercise of unlisted options at A$0.558
each
As at 30 September 2019, there were a total of 6,354,055
unlisted options on issue at various exercise prices and expiry
dates. The following unlisted options were exercised during the
September Quarter 2019:
-- 900,000 unlisted options with an exercise price of A$0.558
each expiring 8 August 2019
No unlisted options were issued or lapsed during the September
Quarter 2019.
As at 30 September 2019, there were a total of 2,300,000
performance rights on issue. There were no new performance rights
issued or cancelled during the September Quarter 2019.
Interests in mining tenements
The 7 Mining Licenses awarded to CMSC span over 60km(2) of the
100km(2) Mining Agreement area[14].
Table 1: Tenement holdings
Tenement Colluli,
Eritrea
==================== ================
Nature of interest Owned
==================== ================
License type Mining Licenses
==================== ================
Current equity 50%
==================== ================
There was no change in tenement holding during the September
Quarter 2019.
For more information, please contact:
Danakali
Niels Wage William Sandover
Chief Executive Officer Head of Corporate Development
+61 8 6189 8635 & External Affairs
+61 499 776 998
Corporate Broker - Numis Securities UK IR/PR - Instinctif Partners
John Prior / Matthew Hasson / David Simonson / Sarah Hourahane
James Black / / Dinara Shikhametova
Paul Gillam danakali@instinctif.com
+44 (0)20 7260 1000 +44 (0)207 457 2020
Visit the Company's website: www.danakali.com
Follow Danakali on LinkedIn:
www.linkedin.com/company/danakali-limited
Subscribe to Danakali on YouTube:
www.youtube.com/channel/UChGKN4-M4lOvPKxs9b-IJvw
Appendix 5B
Mining exploration entity and oil and gas exploration entity
quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97,
01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity
---------------------------------------------------------
Danakali Limited
ABN Quarter ended ("current quarter")
--------------- --------------------------------------
57 097 904 302 30 September 2019
Consolidated statement of cash Current quarter Year to date
flows $A'000
(9 months)
$A'000
1. Cash flows from operating
activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation - -
(b) development - -
(c) production - -
(d) staff costs (254) (725)
(e) administration and corporate
costs (436) (1,330)
1.3 Dividends received (see note - -
3)
1.4 Interest received 16 69
1.5 Interest and other costs of - -
finance paid
1.6 Income taxes paid - -
1.7 Research and development refunds - -
1.8 Other (provide details if - -
material)
---------------- -------------
Net cash from / (used in)
1.9 operating activities (674) (1,986)
----- ------------------------------------- ---------------- -------------
2. Cash flows from investing
activities
2.1 Payments to acquire:
(a) property, plant and equipment - -
(b) tenements (see item 10) - -
(c) investments - -
(d) other non-current assets - -
2.2 Proceeds from the disposal
of:
(a) property, plant and equipment - -
(b) tenements (see item 10) - -
(c) investments - -
(d) other non-current assets - -
2.3 Cash flows from loans to - -
other entities
2.4 Dividends received (see note - -
3)
Other - Funding of Joint
2.5 Venture (1,210) (3,170)
---------------- -------------
Net cash from / (used in)
2.6 investing activities (1,210) (3,170)
------- ----------------------------------- ---------------- -------------
3. Cash flows from financing
activities
3.1 Proceeds from issues of shares - -
3.2 Proceeds from issue of convertible - -
notes
Proceeds from exercise of
3.3 share options 502 502
3.4 Transaction costs related - -
to issues of shares, convertible
notes or options
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related - -
to loans and borrowings
3.8 Dividends paid - -
3.9 Other (provide details if - -
material)
---------------- -------------
Net cash from / (used in)
3.10 financing activities 502 502
------- ----------------------------------- ---------------- -------------
4. Net increase / (decrease)
in cash and cash equivalents
for the period
Cash and cash equivalents
4.1 at beginning of period 6,279 9,551
Net cash from / (used in)
operating activities (item
4.2 1.9 above) (674) (1,986)
Net cash from / (used in)
investing activities (item
4.3 2.6 above) (1,210) (3,170)
Net cash from / (used in)
financing activities (item
4.4 3.10 above) 502 502
4.5 Effect of movement in exchange - -
rates on cash held
---------------- -------------
Cash and cash equivalents
4.6 at end of period 4,897 4,897
------- ----------------------------------- ---------------- -------------
5. Reconciliation of cash and Current quarter Previous quarter
cash equivalents $A'000 $A'000
at the end of the quarter
(as shown in the consolidated
statement of cash flows) to
the related items in the accounts
5.1 Bank balances 4,897 6,279
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
---------------- -----------------
Cash and cash equivalents
at end of quarter (should
5.5 equal item 4.6 above) 4,897 6,279
---- ----------------------------------- ---------------- -----------------
6. Payments to directors of the entity and Current quarter
their associates $A'000
Aggregate amount of payments to these parties
6.1 included in item 1.2 and 2.5 128
----------------
6.2 Aggregate amount of cash flow from loans -
to these parties included in item 2.3
----------------
6.3 Include below any explanation necessary to understand
the transactions included in items 6.1 and 6.2
----- -----------------------------------------------------------------
Item 1.2 includes aggregate amounts paid to directors including
salary, directors' fees, and superannuation (excluding the
reimbursement of expenses)
7. Payments to related entities of the entity Current quarter
and their associates $A'000
7.1 Aggregate amount of payments to these parties -
included in item 1.2
----------------
7.2 Aggregate amount of cash flow from loans -
to these parties included in item 2.3
----------------
7.3 Include below any explanation necessary to understand
the transactions included in items 7.1 and 7.2
---- ----------------------------------------------------------------
8. Financing facilities available Total facility Amount drawn
Add notes as necessary for amount at quarter at quarter end
an understanding of the position end $A'000
$A'000
8.1 Loan facilities Nil Nil
------------------- ----------------
8.2 Credit standby arrangements Nil Nil
------------------- ----------------
8.3 Other (please specify) Nil Nil
------------------- ----------------
8.4 Include below a description of each facility above, including
the lender, interest rate and whether it is secured or
unsecured. If any additional facilities have been entered
into or are proposed to be entered into after quarter
end, include details of those facilities as well.
---- -------------------------------------------------------------------------
9. Estimated cash outflows for next $A'000
quarter
9.1 Exploration and evaluation -
9.2 Development -
9.3 Production -
9.4 Staff costs (175)
9.5 Administration and corporate costs (209)
9.6 Other - Funding of Joint Venture (1,394)
9.7 Total estimated cash outflows (1,778)
---- -----------------------------------
10. Changes in tenements Tenement Nature of interest Interest Interest
(items 2.1(b) reference at beginning at end
and 2.2(b) above) and location of quarter of quarter
10.1 Interests in - - - -
mining tenements
and petroleum
tenements lapsed,
relinquished
or reduced
----- --------------------- -------------- ------------------- -------------- ------------
10.2 Interests in - - - -
mining tenements
and petroleum
tenements acquired
or increased
----- --------------------- -------------- ------------------- -------------- ------------
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Sign here: (Joint Company Secretary) Date: 30 October 2019
Print name: Melissa Chapman
Notes
1. The quarterly report provides a basis for informing the
market how the entity's activities have been financed for the past
quarter and the effect on its cash position. An entity that wishes
to disclose additional information is encouraged to do so, in a
note or notes included in or attached to this report.
2. If this quarterly report has been prepared in accordance with
Australian Accounting Standards, the definitions in, and provisions
of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this
quarterly report has been prepared in accordance with other
accounting standards agreed by ASX pursuant to Listing Rule 19.11A,
the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities,
depending on the accounting policy of the entity.
About Danakali
Danakali Limited (ASX: DNK, LSE: DNK) (Danakali, or the Company)
is an ASX- and LSE-listed potash company focused on the development
of the Colluli Potash Project (Colluli or the Project). The Project
is 100% owned by the Colluli Mining Share Company (CMSC), a 50:50
joint venture between Danakali and the Eritrean National Mining
Corporation (ENAMCO).
The Project is located in the Danakil Depression region of
Eritrea, East Africa, and is 75km from the Red Sea coast, making it
one of the most accessible potash deposits globally. Mineralisation
within the Colluli resource commences at just 16m, making it the
world's shallowest potash deposit. The resource is amenable to open
pit mining, which allows higher overall resource recovery to be
achieved, is generally safer than underground mining, and is highly
advantageous for modular growth.
The Company has completed a Front End Engineering Design (FEED)
for the production of potassium sulphate, otherwise known as SOP.
SOP is a chloride free, specialty fertiliser which carries a
substantial price premium relative to the more common potash type;
potassium chloride (or MOP). Economic resources for production of
SOP are geologically scarce. The unique composition of the Colluli
resource favours low energy input, high potassium yield conversion
to SOP using commercially proven technology. One of the key
advantages of the resource is that the salts are present in solid
form (in contrast with production of SOP from brines) which reduces
infrastructure costs and substantially reduces the time required to
achieve full production capacity.
The resource is favourably positioned to supply the world's
fastest growing markets. A binding take-or-pay offtake agreement
has been confirmed with EuroChem Trading GmbH (EuroChem) for up to
100% (minimum 87%) of Colluli Module I SOP production.
Development Finance Institutions, Africa Finance Corporation
(AFC) and African Export Import Bank (Afreximbank, together the
Mandated Lead Arrangers), have obtained formal credit approval
to provide CMSC with US$200M in senior debt finance.
The Company's vision is to bring Colluli into production using
the principles of risk management, resource utilisation and
modularity, using the starting module (Module I) as a growth
platform to develop the resource to its full potential.
Competent Persons Statement (Sulphate of Potash and Kieserite
Mineral Resource)
Colluli has a JORC-2012 compliant Measured, Indicated and
Inferred Mineral Resource estimate of 1,289Mt @11% K(2) O Equiv.
and 7% Kieserite. The Mineral Resource contains 303Mt @ 11% K(2) O
Equiv. and 6% Kieserite of Measured Resource, 951Mt @ 11% K(2) O
Equiv. and 7% Kieserite of Indicated Resource and 35Mt @ 10% K(2) O
Equiv. and 9% Kieserite of Inferred Resource.
The information relating to the Colluli Mineral Resource
estimate is extracted from the report entitled "Colluli Review
Delivers Mineral Resource Estimate of 1.289Bt" disclosed on 25
February 2015 and the report entitled "In excess of 85 million
tonnes of Kieserite defined within Colluli Project Resource adds to
multi agri-commodity potential" disclosed on 15 August 2016, which
are available to view at www.danakali.com.au. The Company confirms
that it is not aware of any new information or data that materially
affects the information included in the original market
announcement and, in the case of estimates of Mineral Resources or
Ore Reserves, that all material assumptions and technical
parameters underpinning the estimates in the relevant market
announcement continue to apply and have not materially changed. The
Company confirms that the form and context in which the Competent
Person's findings are presented have not been materially modified
from the original market announcement.
Competent Persons Statement (Sulphate of Potash Ore Reserve)
Colluli Proved and Probable Ore Reserve is reported according to
the JORC Code and estimated at 1,100Mt @ 10.5% K(2) O Equiv. The
Ore Reserve is classified as 285Mt @ 11.3% K(2) O Equiv. Proved and
815Mt @ 10.3% K(2) O Equiv. Probable. The Colluli SOP Mineral
Resource includes those Mineral Resources modified to produce the
Colluli SOP Ore Reserves.
The information relating to the January 2018 Colluli Ore Reserve
is extracted from the report entitled "Colluli Ore Reserve update"
disclosed on 19 February 2018 and is available to view at
www.danakali.com.au. The Company confirms that it is not aware of
any new information or data that materially affects the information
included in the original market announcement and, in the case of
estimates of Mineral Resources or Ore Reserves, that all material
assumptions and technical parameters underpinning the estimates in
the relevant market announcement continue to apply and have not
materially changed. The Company confirms that the form and context
in which the Competent Person's findings are presented have not
been materially modified from the original market announcement.
Competent Persons Statement (Rock Salt Mineral Resource)
Colluli has a JORC-2012 compliant Measured, Indicated and
Inferred Mineral Resource estimate of 347Mt @ 96.9% NaCl. The
Mineral Resource estimate contains 28Mt @ 97.2% NaCl of Measured
Resource, 180Mt @ 96.6% NaCl of Indicated Resource and 139Mt @
97.2% NaCl of Inferred Resource.
The information relating to the Colluli Rock Salt Mineral
Resource estimate is extracted from the report entitled "+300M
Tonne Rock Salt Mineral Resource Estimate Completed for Colluli"
disclosed on 23 September 2015 and is available to view at
www.danakali.com.au. The Company confirms that it is not aware of
any new information or data that materially affects the information
included in the original market announcement and, in the case of
estimates of Mineral Resources or Ore Reserves, that all material
assumptions and technical parameters underpinning the estimates in
the relevant market announcement continue to apply and have not
materially changed. The Company confirms that the form and context
in which the Competent Person's findings are presented have not
been materially modified from the original market announcement.
AMC Consultants Pty Ltd (AMC) independence
In reporting the Mineral Resources and Ore Reserves referred to
in this public release, AMC acted as an independent party, has no
interest in the outcomes of Colluli and has no business
relationship with Danakali other than undertaking those individual
technical consulting assignments as engaged, and being paid
according to standard per diem rates with reimbursement for
out-of-pocket expenses. Therefore, AMC and the Competent Persons
believe that there is no conflict of interest in undertaking the
assignments which are the subject of the statements.
Quality control and quality assurance
Danakali exploration programs follow standard operating and
quality assurance procedures to ensure that all sampling techniques
and sample results meet international reporting standards. Drill
holes are located using GPS coordinates using WGS84 Datum, all
mineralisation intervals are downhole and are true width
intervals.
The samples are derived from HQ diamond drill core, which in the
case of carnallite ores, are sealed in heat-sealed plastic tubing
immediately as it is drilled to preserve the sample. Significant
sample intervals are dry quarter cut using a diamond saw and then
resealed and double bagged for transport to the laboratory.
Halite blanks and duplicate samples are submitted with each
hole. Chemical analyses were conducted by Kali-Umwelttechnik GmBH,
Sondershausen, Germany, utilising flame emission spectrometry,
atomic absorption spectroscopy and ion chromatography.
Kali-Umwelttechnik (KUTEC) has extensive experience in analysis of
salt rock and brine samples and is certified according by DIN EN
ISO/IEC 17025 by the Deutsche Akkreditierungsstelle GmbH (DAR). The
laboratory follows standard procedures for the analysis of potash
salt rocks chemical analysis (K(+) , Na(+) , Mg(2+) , Ca(2+) ,
Cl(--) , SO(4) (2-) , H(2) O) and X-ray diffraction (XRD) analysis
of the same samples as for chemical analysis to determine a
qualitative mineral composition, which combined with the chemical
analysis gives a quantitative mineral composition.
Forward looking statements and disclaimer
The information in this document is published to inform you
about Danakali and its activities. Danakali has endeavoured to
ensure that the information enclosed is accurate at the time of
release, and that it accurately reflects the Company's intentions.
All statements in this document, other than statements of
historical facts, that address future production, project
development, reserve or resource potential, exploration drilling,
exploitation activities, corporate transactions and events or
developments that the Company expects to occur, are forward looking
statements. Although the Company believes the expectations
expressed in such statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in
forward-looking statements.
Factors that could cause actual results to differ materially
from those in forward-looking statements include market prices of
potash and, exploitation and exploration successes, capital and
operating costs, changes in project parameters as plans continue to
be evaluated, continued availability of capital and financing and
general economic, market or business conditions, as well as those
factors disclosed in the Company's filed documents.
There can be no assurance that the development of Colluli will
proceed as planned. Accordingly, readers should not place undue
reliance on forward looking information. Mineral Resources and Ore
Reserves have been reported according to the JORC Code, 2012
Edition. To the extent permitted by law, the Company accepts no
responsibility or liability for any losses or damages of any kind
arising out of the use of any information contained in this
document. Recipients should make their own enquiries in relation to
any investment decisions.
Mineral Resource, Ore Reserve, production target, forecast
financial information and financial assumptions made in this
announcement are consistent with assumptions detailed in the
Company's ASX announcements dated 25 February 2015, 23 September
2015, 15 August 2016, 1 February 2017, 29 January 2018, and 19
February 2018 which continue to apply and have not materially
changed. The Company is not aware of any new information or data
that materially affects assumptions made.
No representation or warranty, express or implied, is or will be
made by or on behalf of the Company, and no responsibility or
liability is or will be accepted by the Company or its affiliates,
as to the accuracy, completeness or verification of the information
set out in this announcement, and nothing contained in this
announcement is, or shall be relied upon as, a promise or
representation in this respect, whether as to the past or the
future. The Company and each of its affiliates accordingly
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might otherwise have in respect of this announcement or any such
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[1] DNK announcement, 5-Aug-19
[2] DNK announcement, 8-Aug-19
[3] DNK announcement, 4-Aug-19
[4] Interview, Mining Review, 25-Sep-19,
www.miningreview.com/event-news/africa-finance-corporation-proud-to-support-mining-industry-in-nigeria/
[5] DNK announcement, 8-Aug-19
([6]) Nobel Peace Prize, 11-Oct-19,
www.nobelpeaceprize.org/Announcements/The-Nobel-Peace-Prize-2019
([7]) Embassy Of the Federal Democratic Republic of Ethiopia, 11
October 2019,
www.ethioembassy.org.uk/statement-from-the-prime-ministers-office-following-the-announcement-of-the-2019-nobel-peace-prize/
[8] António Guterres Twitter, 11-Oct-19,
www.twitter.com/antonioguterres/status/1182593451201712129?lang=en
[9] Borkena, 26-Jul-19,
www.borkena.com/2019/07/26/eritrea-ethiopian-trade-agreements-under-preparation/
[10] Africa News, 26-Jul-19,
www.africanews.com/2019/07/26/imf-dissects-eritrea-s-economy-the-successes-challenges-prospects/
[11] Tesfa News, 11-Sep-19,
www.tesfanews.net/eritrea-road-expansion-modernization-integration/
([12]) Ministry of External Affairs, Government of India,
www.mea.gov.in/press-releases.htm?dtl/31242/Subhash_Chand_appointed_as_the_next_Ambassador_of_India_to_the_State_of_Eritrea
[13] DNK announcement, 12-Jun-18
[14] DNK announcements, 1-Feb-17
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDPGGBAUUPBGQB
(END) Dow Jones Newswires
October 30, 2019 03:00 ET (07:00 GMT)
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