PhosCo Ltd (ASX:PHO), an ASX-listed company focused on the exploration and development of phosphate resources, has unveiled robust results from an updated Scoping Study for its Gasaat Phosphate Project in Tunisia. The study underscores the company’s strategy to meet global demand for new fertiliser sources. Key financial highlights include an after-tax Net Present Value (NPV10) of US$732 million and an Internal Rate of Return (IRR) of 52%, projecting a payback period of just 20 months from commercial production. The project anticipates total revenue of US$10 billion.
Significant developments since the 2022 study include crucial backing from the Tunisian Government and the European Bank for Reconstruction and Development (EBRD). This support secured the Gasaat Project solely for PhosCo and established a landmark Memorandum of Understanding. Exploration success also defined maiden resources at the KM and SAB prospects. Furthermore, a metallurgical breakthrough will enable a simplified, single-stage flotation flowsheet, allowing production of both premium (~33% P2O5) and standard grade (~30% P2O5) phosphate concentrates. The project outlines an open-pit mine to deliver 1.4 million tonnes per annum (Mtpa) of high-quality concentrate, with estimated development capital of US$199 million.
PhosCo projects a 49-year mine life, targeting production of 134 Mt at 19.9% P2O5. The company will now proceed with a preliminary and bankable feasibility study. These next steps are bolstered by the activation of an option for a further A$7.5 million equity investment from the EBRD, a strategic partnership with Tunisian engineering firm STUDI including an A$1.4 million investment, and a US Government funding program worth US$1.5 million aimed at mobilising US investment. An estimated US$220 million in total funding will likely be required, with PhosCo exploring a combination of debt and equity sources.
