Trigg Mining receives eye-catching valuation from highly experienced Sydney analyst
26th August 2021
Resources Rising Stars
Emerging sulphate of potash developer Trigg Mining (ASX: TMG) has been valued at 40c by Sydney-based equities research group Corporate Connect in a comprehensive initiation research report issued just weeks before the company delivers a scoping study on its flagship Lake Throssell SOP project in WA.
The eye-catching valuation, which compares with a current share price of 10.5c, is informed from more progressed peer projects and a discounted cash-flow equity derived value “with potential upside as its projects de-risk through development stages.”
The research report, by experienced resource analyst Joh Snyman, is the first detailed research note on Trigg, which listed on the ASX two years ago and has rapidly progressed its portfolio of sulphate of potash projects in the Laverton region of Western Australia.
Snyman has an impressive track record as an analyst, having worked as a Senior Investment Analyst for UBS and Allianz Global Investors and as an Equities Research Analyst for BNP Paribas and Credit Analyst, Group Credit Management for ANZ.
His research is likely to attract attention from institutional investors seeking leveraged opportunities in the emerging SOP sector.
The company is developing a substantial brine-hosted Indicated and Inferred Resource of 14.3Mt of drainable SOP at a high grade of 10.4kg/m3 SOP equivalent at what Corporate Connect describes as the “potential world-class” Lake Throssell Project.
“This is a large, scalable deposit able to support a sustainable multi-decade WA production hub to meet growing global demand for SOP,” the report says. “There is upside through further exploration of adjoining Lake Throssell tenements and nearby at Lakes Yeo and Rason.”
“There are limited global producers of SOP, and a large proportion of global supply is chemically manufactured from MOP through an expensive and environmentally unfriendly secondary (Mannheim) process,” it adds.
Corporate Connect notes that there is limited global production of sulphate of potash – a premium fertiliser that is chloride-free and hence suitable for growing high-value crops that are sensitive to salt in the soil, coupled with strong demand for fertiliser.
This is due to a growing population coupled with a fall in arable land per capita.
Plus, Australian demand is currently wholly supplied by imports.
“Brine-hosted SOP is a natural mined source with limited processing and therefore is potentially able to be organically certified for use in organic agriculture,” it says.
“Trigg’s projects are located close to existing energy and transport infrastructure, providing potential cost-effective links to domestic and international markets,” it says.
A Scoping Study on the Lake Throssell Project is due for completion next month.
To view a full copy of the Corporate Connect Research Report, click here.
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