MNB starts construction of phosphate project

Just before the holiday break, our phosphate and green ammonia Investment Minbos Resources (ASX: MNB) published a post confirming that construction had started at its phosphate fertiliser project.

Yes, that’s right… construction has begun:

(Source)

MNB ended 2024 strongly with three big announcements in one week:

• 2nd December 2024 - The first Sovereign Wealth Fund cash hits MNB bank account (US $6.4M out of US $10M)
• 5th December 2024 - Civil construction contract signed - contractor begins mobilising to site. The completion date for works set as “12 May 2025”
• 6th December 2024 - US$12M credit facility final term sheet signed with Bancio BAI (Angola’s biggest bank).

A few weeks after that busy news week MNB kicked off construction of its project.

Over that period MNB’s share price ran to almost 10c per share, and the company took advantage of the rally raising $4.4M at 7c per share with a 2:3 10c option.

(we participated)

MNB is now trading below the raise price at 5.8c per share BUT we think this is somewhat expected during that “post cap raise churn”.

With construction now underway and some financial cushioning we are hoping for a big year from MNB in 2025.

How does this affect our MNB Investment Memo?

This relates to Objective #1 from our MNB Investment Memo - construction is late, but we’re glad it’s finally happening:

Objective #1: Finalise plant construction and first production

With construction underway at MNB’s phosphate project, we look ahead to first production of its phosphate product by the late 2023 target.

We want to see MNB secure the required $40M in financing to complete construction.

Milestones
🔁 Secure financing to fund construction completion
🔁 Complete construction of phosphate project
🔲 First production

Source: 19th December 2022 MNB Investment Memo

What’s next for MNB?

🔄 Construction and assembly of MNB’s Phosphate Fertiliser Plant

First of all, we want to see MNB complete construction works and get its plant operation ready.

We should see a fair bit of newsflow on this front between now and May next year.

🔄 Lock in remaining financing to get the project into production

At the same time, we want to see MNB lock in the remaining funding deals that are being worked on right now.