To tell us more, Patrick McManus, managing director, exclusively joins Proactive Q&A Sessions™.
PROACTIVE INVESTORS: Welcome Patrick.
First of all Patrick, what is the logic behind the name change?
Patrick McManus: One of our key items at our AGM is to rename the company from Potash West NL to Parkway Minerals NL.
The logic behind that change is that a key element of the Dinner Hill project value is its phosphate content.
Development of Stage 1 is focussed solely on the phosphate layer at Dinner Hill.
The name Potash West was therefore confusing for people not familiar with our projects.
It didn’t reflect the company’s primary focus to first bring on commercial development of our phosphate project, with potash production only emerging as a key element of the Stage 2 development program.
We chose the name Parkway Minerals to allow the continued use of the PWN ticker, and I hope that the change does not cause any difficulties to investors.
What is the next upcoming key news flow investors need to look out for?
Patrick McManus: We are progressing with work at Dinner Hill, in addition to our project in Germany.
Dinner Hill is the site of our first resources within the Dandaragan Trough, scoping studies indicate long life projects for both phosphates and potash based at that site.
In Germany, the team at our 55% owned East Exploration is now collating the large amount of exploration data available for the Gråfentonna potash licence area.
A review of that data should be completed in the first quarter of 2017.
Potash West is also vending East Exploration into the current IPO of Davenport Resources.
The IPO is in progress and should be completed by the end of next month.
PWN will own ~ 25% of the new listed company, plus performance shares.
What are the next steps at the company’s flagship Dinner Hill project?
Patrick McManus: We are progressing key elements of the Pre-Feasibility Study at the moment.
We have engaged Kemworks to review the process work carried out to date.
Kemworks is a phosphate process specialist, based in Florida USA, which is one of the centres of excellence for phosphate mining.
They have already identified areas of potential improvement, and test work is being undertaken to optimise the process for one of Dinner Hill’s ore types.
A fauna study has been completed on the potential mine site, to complement the flora study completed in 2015.
The report is imminent.
On a peer analysis, how does Dinner Hill compare to similar projects globally?
Patrick McManus: Dinner Hill is virtually unique in that the project is aiming to produce two of the key fertiliser elements, Phosphorous (P) and Potassium (K), from the one ore sequence.
Our K-Max process produces phosphates, the premium potash known as Sulphate of Potash or SOP, alum and other minerals.
The location of the deposit, in Western Australia and close to rail, power and export ports, provides a low capital cost route to cash flow.
With South East Asia importing virtually 100% of its P and K, local WA suppliers provide an opportunity for a tighter supply chain, at more competitive costs and less working capital for operations.
How is the spin-out of Davenport Resources progressing, and what should existing Potash West shareholders expect?
Patrick McManus: Under this IPO, East Exploration, 55% owned by Potash West, is being sold into Davenport Resources when its current capital raising and listing on the ASX is completed, expected by late this calendar year.
Potash West will own 19.2 million shares in Davenport or 25% of the company and that recognises additional shareholder value in this new venture which will be focused on German South Harz potash interests and a high potential IOCG asset in the Northern Territory.
Finally, why should an investor consider adding Potash West, or Parkway Minerals as it is to become, to their portfolio?
Patrick McManus: Long term, the fertiliser feedstock market should grow faster than GDP, driven by population growth, improving diets and relative decline in arable land.
We believe that good fertiliser feedstock projects in localities like WA with low sovereign risk, good infrastructure and close to large local and regional markets, will attract strong interest.
Short term, work on the Dinner Hill PFS should be reported in the coming March quarter, as well as updates from a review of the South Harz potash project data.
PROACTIVE INVESTORS: Thank-you Patrick.