{"id":1138218,"date":"2019-09-13T13:51:52","date_gmt":"2019-09-13T18:51:52","guid":{"rendered":"https:\/\/www.mining.com\/?p=1001934"},"modified":"2019-09-13T13:51:52","modified_gmt":"2019-09-13T18:51:52","slug":"danakalis-h1-loss-widens-on-rising-costs-at-colluli","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1138218","title":{"rendered":"Danakali\u2019s H1 loss widens on rising costs at Colluli"},"content":{"rendered":"<p>Australia\u2019s Danakali (ASX, LON:DNK) on Friday released its <a href=\"https:\/\/www.danakali.com.au\/investor-relations\/asx-announcements\"  rel=\"noreferrer noopener\" aria-label=\"financial report (opens in a new tab)\">financial report<\/a> for the six months ended June 30, 2019. Loss widened in the first half as the company continues to develop its flagship project in East Africa. <\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>The potash project developer posted a pretax loss of $1.5 million for the first half of 2019, compared to a loss of $1.1 million a year earlier. Part of this expanded loss can be traced to rising administrative costs at the Colluli project.<\/p>\n<p>Colluli, located in the Danakil Depression region of Eritrea, is expected to be <a rel=\"noreferrer noopener\" href=\"https:\/\/www.mining.com\/danakali-to-start-developing-vast-potash-project-in-eritrea-by-year-end\/\" >one of the world&#8217;s most significant<\/a> and lowest cost sources of sulphate of potash (SOP). The project is a joint venture between the Eritrean National Mining Co and Danakali, with each having 50% ownership of the joint venture company, Colluli Mining Share Co.<\/p>\n<p>In August, Danakali secured a <a rel=\"noreferrer noopener\" aria-label=\"$200 million financing (opens in a new tab)\" href=\"https:\/\/www.mining.com\/danakali-secures-financing-for-power-plant-at-vast-potash-project-in-eritrea\/\" >$200 million financing<\/a> to develop the Colluli project. Construction of the mine is expected to take two and a half years. Annual production could reach almost 944,000 tonnes of SOP over a possible 200-plus-year mine life.<\/p>\n<p>Recent Colluli front-end engineering design results reaffirmed the &#8220;outstanding&#8221; project economics, Danakali highlighted in Friday&#8217;s press release.<\/p>\n<p>Meanwhile, interest revenue also fell by 41% for the six-month period, while net profit on financial assets declined to $521,661 from $1.2 million year-on-year.  <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The potash project developer posted a pretax loss of $1.5 million for the first half of 2019, compared to a loss of $1.1 million a year earlier.<\/p>\n","protected":false},"author":88,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[369,4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1138218"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/88"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1138218"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1138218\/revisions"}],"predecessor-version":[{"id":1138227,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1138218\/revisions\/1138227"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1138218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1138218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1138218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}