In June 2023, BCI Minerals (‘BCI’ or ‘the Company’) updated the market on progress for the Mardie Salt and Potash Project, including a details of the base case financial model.
This is a major milestone for the Company, which is proceeding with confidence on delivery of the Mardie Project – a future tier 1 solar evaporation project that will be a sustainable supplier of salt and potash for generations.
BCI’s Managing Director, David Boshoff, said: “The Mardie Project is a world-class project with excellent fundamentals, it is technically robust and has attractive project economics to support its funding.
“We trust that Mardie will become one of the most sustainable, long life and naturally renewable resource projects in the world and I have every confidence in the team to deliver this project,” Mr Boshoff said.
The Project began to experience inflationary cost pressures that occurred industry wide in the first half of 2022. On 7 July 2022, BCI announced a full review of all material packages and operational costs whilst at the same time developing an update to the base case financial model.
Over the past 12 months, many elements of the Project have been reviewed by BCI’s Project Team with the assistance of external experts to optimise the project design, cost and development schedule.
As of 31 March 2023, BCI has spent a cumulative $307M on construction activities and awarded $551M to date.
“It is pleasing to say that within the last six months, we have been able to complete packages in line or under the base estimates,” said Mr Boshoff.
The base case outlines the capital cost estimate at $1,421M due to design improvements and increased market rates since Final Investment Decision (FID) in 2021. On advice from independent technical experts, contingencies and growth allowances have been set at $208M.
BCI is expected to generate more revenue and EBITDA than previously projected, given higher current and projected salt and sulphate of potash prices.
Key shareholders and lenders continue to support the Mardie Project, and the pathway to securing the additional funding required to complete the Project is well underway.
For more information on this announcement, view the presentation slides and script below: