Danakali Limited (ASX:DNK) presents on its sulphate of potash (SOP) projects, the growing demand for fruit and vegetable nutrients and its close proximity to the coastline for shipping.
Danakali Limited (ASX:DNK) operates in the potash sector which is essential to plants, fruit, vegetables, nuts, coffee and tea. Sulphate of potash (SOP) is a type of potassium and is a key macronutrient, essential for plant life, crop quality and water efficiency.
Global demand (excluding China) is expecting grow by about three per cent per year, to 2040 and SOP commands a price premium as it’s set to become under supplied without capacity for investment. China already consumers more than it produces and there is significant upside in the US and China.
Danakali has several strategically located development projects with 1.1 billion tonnes of ore, near the Ethiopia-Eritrea border. Its projects are also the closest SOP projects to the coastline, making it low risk and low-cost.
For more, watch the Head of Corporate Development and External Affairs present.