Dehai News

Danakali releases 2020 Financial Report

Danakali Limited (ASX: DNK, LSE: DNK) (Danakali, or the Company), the potash company focused on the development of the Colluli Potash Project (Colluli, or the Project) in Eritrea, is pleased to announce its Full Year Results for the year ended 31 December 2020. 

Key project highlights

· The Ministry of Energy & Mines accepted the Notice of Commencement of Mine Development for Colluli

· DRA Global, Colluli's EPCM Contractor, updated the FEED estimate and execution schedule.

· The use of beach wells as the water intake alternative was confirmed as a valid optimisation. Final test work underway to confirm details of the filtered sea water optimisation for the process plant.

· Aggreko was appointed as preferred power provider to provide full scope of support services for the supply, commissioning, and maintenance of the power plant, then transfer to Colluli, under 5-year BOOT contract.

· RA International was appointed as preferred contractor for supply of Accommodation, Support Services and other infrastructure buildings in support of the Colluli SOP Project development.

Key corporate highlights

· Dr Rod McEachern former Director for Process and Product Innovation at Nutrien and PotashCorp was appointed as Chief Operating Officer

· Three new directors appointed to the Board of Directors: Neil Gregson, previously held the position of Portfolio Manager at JP Morgan Asset Management Global Equities, London, Samaila Zubairu, President & CEO of AFC and Taiwo Adeniji, Senior Director for Investment Operations and Execution; both from African Finance Corporation (AFC).

· The first Sustainability Report which outlines the Company's ongoing and planned contributions of its Colluli Potash Project to the Sustainable Development in Eritrea was released.

Key financial highlights

· Cash position of A$9.7M as at 31 December 2020

Post-period highlights

· The Company announced that it will work with its preferred power provider, Aggreko on incorporating its renewable energy sources, solar, wind and geothermal for the generation of its future power of the Project with the view to becoming Zero Carbon in the production of Sulphate of Potash (SOP). 

Corporate Governance Statement

The Corporate Governance Statement is available for download from the Company's website at https://www.danakali.com.au/images/stories/corporate-governance-statement/20210331_4_Corporate_Governance_Statement_2020.pdf

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