Low cost production

Kore intends to be the one of the lowest cost producers of potash globally and the lowest cost supplier to its target markets

Very low cost of supply into target markets

Kore has the potential to be:

  • The lowest cost supplier to its target markets
  • The second lowest cost producer (Kola project) of MoP on an export cost basis at US$86.61/t FOB (real 2019)
  • The DX project is expected to supply potash to African markets at a cost of US$114.61/t CFR (real 2019)
  • Ability to compete on price against all existing suppliers in our selected growing markets
  • Increasingly competitive in scenarios where global land transport and shipping costs increase
  • Significantly more environmentally sustainable than other potash projects, due to low operational costs and shorter transport distances to end users

Global MoP export cost curve1 (FOB)

US$/t MoP (2022)

Brazil MoP delivered cost curve1 (CFR Brazil)

US$/t MoP (2022)

Source: CRU Potassium Chloride Market Study August 2018
1. Kola FOB and CFR delivered costs used in the cost curves are on a real 2018 basis escalated to 2022

Comparison with other projects

The large Potash deposits in the Sintoukola basin have potential to produce potash for multiple generations.

DX is a low capital cost, low operating cost project

  • Ore Reserves of 17.7 Mt at a grade of 41.7 % KCl make this one of the highest grade potash projects globally

Kola is amongst the shallowest MoP projects globally

  • Shaft bottom 270m below surface
  • Significant opex and capex advantage

Comparative mine depths

Kola, like DX, is one of the highest grade undeveloped potash deposit globally

  • Only 1-2 other peers come close to Kola but both well over 1,000m deep
  • Grade a key driver of high operating margins in potash mining

Comparative mine grades

As demand for potash increases rival producers will only be able to increase production at the top end of the market wide cost curve. This will mean that Kore‘s cost advantage will become even greater