Sage Potash Completes a PEA That Delivers After-Tax NPV of US$502 million and IRR of 39%

Sage Potash has completed a Preliminary Economic Assessment that demonstrates compelling economics for its potash project, delivering an unlevered after-tax Net Present Value of US$502 million at an 8% discount rate and an Internal Rate of Return of 39%. These robust financial metrics position the project as a potentially attractive development opportunity in the critical minerals sector.

The underlying resource base supporting these economics consists of an inferred resource of 298 million metric tonnes grading 42.1% KCl (equivalent to 26.6% K2O). The deposit quality is enhanced by exceptionally low impurity levels, with less than 1% insolubles and only 0.01% carnallite content. This high-grade, low-impurity profile represents premium potash characteristics that typically command stronger market positioning and pricing.

The completion of this PEA represents a significant milestone for Sage Potash as it advances what the company characterizes as a critical mineral potash project. The strong economic returns indicated by the study suggest the project could be competitive within the global potash supply landscape, particularly given increasing focus on food security and fertilizer supply chain resilience.

For the broader potash sector, projects demonstrating such robust preliminary economics are noteworthy given the capital-intensive nature of potash development and the industry's consolidation around a relatively small number of major producers. The high IRR and substantial NPV figures suggest this project could attract development capital and potentially contribute to addressing long-term potash supply requirements.