Investment Thesis.

  • The Ochoa Project is a long-life asset, which will produce earnings, before interest, taxes, depreciation, and amortization (EBITDA), of more than US$250 million per year.
  • The Ochoa Project’s cost of SOP production will be in the bottom quartile of the world cost curve.
  • SOP from the Ochoa Project will be premium quality and highly sought worldwide.
  • The SOP market is underserved, with no other viable emerging sources.
  • The structure of the MOP market is such that the long-term price of MOP will be controlled by a finite group of large corporations; therefore, SOP pricing will benefit from a floor in the MOP price.
  • SOP has always been priced at a substantial premium (30% to 50%) over the prevailing market price for MOP.