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- American Pacific Borates (ABR) has retracted news in the announcement it reported yesterday
- Yesterday, the company announced its plans to double sulphate of potash production at the Fort Cady mine
- American Pacific has not completed a revisited definitive feasibility study to ensure this model is correct and therefore has no reasonable basis for the forecasts
- The ASX has told the company it must list material assumptions relating to the production target
- ABR has commenced its revision of the Fort Cady Borate Mine DFS
- American Pacific is down 4.55 per cent at market close, trading at 32 cents per share
American Pacific Borates (ABR) has retracted news in the announcement reported yesterday.
Yesterday, the company announced it plans to double its production of sulphate of potash (SOP) at Fort Cady.
The ASX has told the company it must list material assumptions relating to the production target.
American Pacific has not completed a revisited definitive feasibility study (DFS) to ensure this model is correct and therefore has no reasonable basis for the forecasts.
Investors should not rely on this information as a basis for an investment decision and as a result, the company retracts the relevant release.
In this case, ABR has commenced a revision of the Fort Cady Borate Mine DFS.
Fort Cady is located in Southern California in the U.S. It is a highly rare and large colemanite deposit and is the largest known contained borate occurrence in the world that isn’t owned by the two major borate producers: Rio Tinto and Eti Maden.
The DFS aims to potentially increase SOP production and earnings before interest, taxes, depreciation, and amortization (EBITDA).
Sulphate of Potash is a low-chlorine, potassium-based fertiliser. It helps to ripen and strengthen plants ensuring they can defend against pests, disease and weather damage.
American Pacific wants to focus on potentially increasing production of SOP to take advantage of the mine location, infrastructure and the demand that lies within the U.S. market.
The mine is located on the West Coast which is a major consuming area for SOP.
“The mine will have the required electricity and gas to power the additional Mannheim furnaces, as the Mine has access to grid electricity and network gas,” the company told the market.
DFS revision will focus on Phases 1B, 2 and 3 to ensure detailed engineering and timelines for phase 1 is not affected.
“There will be no change to Mineral Resources, Ore Reserves or assumed DFS mine life as the production targets for boric acid will remain unchanged,” the company said.
American Pacific is down 4.55 per cent at market close, trading at 32 cents per share.
