SASKATOON - Gensource Potash Corporation ('Gensource' or the 'Company') (TSXV: GSP, AIM: GSP) announces today its plans to host a shareholder update call for Wednesday August 31, 2022 at 4:00 PM Eastern time, during which the Company will provide an update on the development of its potash project near Tugaske, SK, discuss next steps, current fertilizer market industry dynamics and respond to shareholder questions.
The call is scheduled for 4:00 pm Eastern time. Participants can join the call by dialing: 1-844-534-3191. If shareholders would like any specific items addressed during the call, they should email questions in advance to: info@gensource.ca Gensource is actively pursuing the equity capital markets to complete the full project financing package for the Tugaske Project (in conjunction with the previously announced committed debt financing), which will allow the first module at the Tugaske Project to commence construction. However, turmoil in the global financial markets, exacerbated by Russia's invasion of Ukraine, have caused delays in completing the equity financing.
Recent comments by Deputy Prime Minister Chrystia Freeland that Saskatchewan potash is 'more important then ever' and is now 'geopolitically essential' is an example of how vital potash supply is and how vital Gensource's Tugaske Project production is to creating a new source of potash supply. Equity investor groups are now also beginning to see potash production in the same way. 'Although the first half of 2022 saw challenging capital markets, management believes the supply and demand dynamics for fertilizer remain robust. Global supplies have been curbed or disrupted sharply and, accordingly, management believes that there is great demand for certainty-of-supply for fertilizer products, particularly potash.' said Mike Ferguson, CEO of Gensource Potash.
'Our modular technology, world-leading environmental profile, and 80,000 acres of subsurface mineral rights available for mining in the Company's Vanguard Area make Gensource a natural fit for investors looking to enter the potash production space.' HELM AG and HELM Fertilizers (together, 'HELM'), the Company's future equity partner and the Tugaske Project's off-taker, remains focused on the Tugaske Project with its $50M equity investment commitment (previously announced) and is additionally providing short term support for the completion of the project financing effort and the current bridge engineering work.
Financing and construction of the first module at Tugaske remains the priority focus for the Company and HELM, with initial planning for a second, previously announced, module at the Tugaske Project expected to be incorporated as the Tugaske Project develops. Executive Vice President, Crop Nutrition Helm AG, Olivier Saulnier, commented, 'We are looking forward to participating in the Tugaske project not only to capitalize on the marketing opportunities and enhance our current supply chain for potash distribution, but also to be part of the exceptional environmental profile of the project'.
'The strength of the potash market and the current supply constraints provide an opportunity to accelerate potential high-return strategic growth opportunities in the potash world. We intend to capture this opportunity by adding more modules with HELM at the Tugaske Project and other partners at other projects', added Mike Ferguson of Gensource.
Agriculture And Potash Market Update
The following are some general insights into the agriculture sector. While Gensource is not an agricultural commodity producer, the potash and general fertilizer markets are generally driven by agricultural commodities.
Global grain and oilseed stocks-to-use ratios remain well below historical average levels, which we believe will continue to be supportive for crop prices. Prices for key crops such as corn, soybeans and wheat are up 25 to 35 percent compared to the 10-year average, providing strong incentive for growers to increase production.
The United States Department of Agriculture (USDA) projects that Ukrainian wheat and corn production will be down by more than 40% and combined Ukrainian exports of corn, wheat and barley will be down by approximately 60% year-over-year in 2022/23.
United States crop conditions started the 2022 growing season favorably, however, recent hot and dry weather has accelerated crop development and could limit yield potential. In Western Canada, growing conditions have improved from the severe 2021 drought.
Restricted supplies of potash from Russia and Belarus kept potash prices at historically high levels through the first half of 2022. Potash shipments from Russia and Belarus were estimated to be down approximately 25 and 50 percent respectively in the first half of 2022, with the majority of Belarus exports occurring in the first quarter.
For potash, given the severe restrictions in place, it is expected that the current global supply shortages will continue for the foreseeable future as management believes the supply problems have now become structural in nature.
Contact:
Mike Ferguson
Tel: +1-306-974-6414
GENSOURCE POTASH CORPORATION 