Aguia notches up $600k of Brazilian phosphate sales in two weeks

Aguia Resources has hit the ground running with sales of its Pampafós organic phosphate product, notching up sales of an impressive $A600,000 in the first two weeks since kicking off mining at its Tres Estrades project in Brazil.

With the football World Cup underway, the company has scored its own huge goal by securing a significant 2000-tonne order of Pampafós from Co-operativa Tritícola Caçapavana Ltda. (Cotrisul), a leading agricultural organisation in Rio Grande do Sul, Brazil.

The large Cotrisul order will generate revenue of $A380,000 for Aguia and comes with a valuable 10 per cent upfront payment. The two firms have agreed on a scheduled pickup plan for the product over a two-year contract, aligned with Aguia’s processing plant output.

Management says a further 1000 tonnes of product have been sold to a group of small farmers. The company added it is in advanced talks to sell a further 5000 tonnes, with more sales announcements expected to roll out over the coming weeks. The product is priced at $190–200 per tonne for small farmers, with a discount available for upfront payment before June 30.

Aguia’s fully-owned phosphate project, Tres Estrades, sits 320 kilometres from Porto Alegre, Rio Grande do Sul, in Brazil. The project was given the nod of approval to begin mining its phosphate material in May after securing a coveted operating licence. Since then, it has wasted no time in presenting the in-demand product to a suite of potential buyers.

The company’s commercial team and third-party sales representatives have presented the product to more than 100 potential customers and received expressions of interest from far and wide. Some parties in the northeast, more than 4000 kilometres from its processing plant, have expressed interest in the product.

Additional enquiries have been received from farmers in the southeast, including Minas Gerais and São Paulo, alongside farmers in the deep south of the massive South American country.

Aguia Resources managing director and chief executive officer Timothy Hoskings said: ‘These initial sales provide strong commercial validation of Aguia Fertilizantes’ strategy. Negotiated directly with a respected agricultural co-operative and regional farmers, it reinforces confidence in Pampafós as a regional phosphorus source for southern Brazil.”

Hosking said the two-year Cotrisul contract has helped to support a long-term commercial relationship and provide a basis for future volume growth as production capacity increases.

Aguia believes its success with Pampafós will result from the product’s value as an ag