Danakali Limited (ASX:DNK): Strategically located, Multi-century production, Low Cost

potash

Untappedalpha

Conclusion:

  • Global trend plays- Best positioned to take advantage of Eastern population growth and requirement of higher yielding crop output in emerging market countries.
  • Current value not reflecting multi decade revenue stream potential.
  • An attractive high risk proposition with considerable upside potential and personally favoured in the developing potash space.

Catalysts of near term price movement

  1. Appointment and financial planning from Endeavour Mining- specialists in Mining project funding.
  2. Release of DFS (Q3 2015).
  3. Application of Mining Licence (Q4 2015).

Overview:

Danakali Limited (ASX:DNK), is a small natural mineral mining company that has created a 50/50 joint venture with the Eritrean National Mining Company (ENAMCO), currently prospecting a vast 400Km2 Potash site in South East Eritrea. Given the potential to create a mine lasting several centuries this company seems to have been, so far over-looked by the majority of investors.

Danakali (founded in 2003) has up until the last few…

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