SO4 has published a Bankable Feasibility Study (BFS) with better outcomes than the Scoping Study. Non-dilutive funding has been secured, and construction is already underway with the Train 1 ponds commissioned. The Lake Way Sulphate of Potash (SOP) BFS project economics are excellent with high quality product being produced over an initial mine life of 20 years. The project has a post-tax NPV8 of $479m and a post-tax IRR of 28%. Steady-state EBITDA will be $111m (up from $90m) and free cash flow $78m (up from $64m). We have upgraded our recommendation from SPEC BUY to BUY and upgraded our price target from $1.34 to $1.71 p/s.
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