Aguia revenue triples as twin South American projects fire
Aguia Resources has posted a more than threefold increase in quarterly revenue to $639,000, signalling a turnaround as its South American gold and phosphate projects begin to deliver cash flow.
While the Colombian gold mine rings the till, the company is also advancing its flagship Três Estradas phosphate project in Brazil, where it has built a 30,000-tonne stockpile of ore - with an estimated value of $5,000,000 - ready for processing. A further 1600 tonnes of processed ore is also available for sale at its Cacapava plant, which operates under a separate licence to the mine. At the current production rate of 4000 tonnes per month, Aguia expects this inventory to support sales for the next six months.
The company has already demonstrated a strong local appetite for its fertiliser product, locking in a whopping $2.3 million in sales for 11,000 tonnes within just six weeks of commissioning its plant. More recently, it landed payments for 825 tonnes of its Pampafos organic phosphate product at an average price of A$192 per tonne.
The timing of the newly operational phosphate venture looks spot on, with Brazil’s government keen to bolster domestic fertiliser production to reduce its heavy reliance on imports. A federal $2.7 billion program known as “Profert” was recently approved to incentivise local producers, providing a powerful tailwind for projects such as Três Estradas. With the incumbent government returned to power in the recent election, that policy support looks set to continue.
While Aguia continues to mine, process and sell phosphate under its existing operating licence, a legal challenge to its environmental licensing process remains unresolved. However, the company expects the Federal Regional Court to revisit the case within 30 to 60 days after a dissenting judge prioritised the matter for review, while the local municipality of Lavras do Sul has also sought to overturn the earlier ruling.
The project has attracted significant political support, with more than 20 mayors, councillors and parliamentarians attending a recent public rally in Porto Alegre to back Três Estradas and the regional investment it promises.
