Minbos launches fertiliser brand in Angola
Locally sourced, for local farmers in Angola.
Our 2022 Wise-Owl Pick of the Year, Minbos Resources (ASX: MNB), has just launched its brand of fertiliser phosphate - Prosper Primeiro.
We have been Invested in MNB for over three years now and have been following the company's journey to turn its Angolan phosphate deposit into a fully fledged fertiliser business.
When investing in small cap exploration companies it's rare to see a company move into production, but seeing these designs from MNB shows just how close the company is.
The company launched the product brand at an industry workshop in Angola, which was attended by over 200 delegates as well as representatives from Agricultural, Economic and Mining ministries.
Key to the workshop was to showcase MNB’s new product and initiatives that have been developed (together with the IFDC - International Fertilizer Development Center) to improve crop yields for farmers.
MNB will be launching a free app that helps farmers to better use its product and deliver higher crop yields:
Why is this important?
MNB has signed an offtake deal with Carrinho Group for 66% of Stage 1 production over the next 7 years.
Carrinho Group is an integrated agri-distribution business that has the resources and infrastructure to service the millions of small hold farmers in the country.
The better the product is used, the better the outcome for MNB’s partners, farmers and the agricultural industry.
MNB has grand ambitions to turn Angola into the agricultural hub of Africa.
In order to do that it needs to help farmers, at a grass-roots level.
As the agricultural industry grows, so does MNB’s value to the country.
In the presentation released together with the announcement, MNB showcases the benefits of its product specific to the Angolan climate. Click here to see the full presentation.
As you can see here from a field trial with Biocom (one of the largest sugarcane farms in Africa) MNB’s product is far superior to existing fertilisers:
We think that this launch is the start of something big for MNB and Angola as the company looks to move into production before the end of this year.
What’s next for MNB?
🔄 Funding for the remainder of CAPEX on the project
Previously, MNB confirmed that progress was being made on non-dilutionary funding (debt and/or prepayment) for most of the remaining project CAPEX.
In the March quarterly report MNB confirmed that the remaining CAPEX for the project was ~US$30M.
🔄 First production
MNB is aiming to begin production before the end of this year.
🔄 P4 Study Results
MNB has commenced a concept study into whether its phosphate waste product is suitable for P4 in batteries.
MNB has a Strategic Cooperation Agreement in place with a syndicate of Chinese new energy materials investors - controlled by the Chairman of CATL.
This study is due by the end of the year with the outputs expected to form part of a joint venture with interested parties.
