Aguia Resources has locked in a whopping $2.3 million in sales of its Pampafos organic phosphate product within just six weeks of commissioning its Três Estradas plant in Brazil.
The company says its sales haul includes a fresh $1.6 million secured just this week from three established agricultural distributors in Brazil’s Rio Grande do Sul state, as its premium Pampafos product starts to gain momentum.
The sales figures mark a significant milestone for the multi-commodity South American company, which is now successfully generating revenue from its dual operations in gold and fertiliser.
Aguia says it has completed the first delivery of Pampafos to the Markus family farm, a major local soybean producer and cattle operator. The adoption of the product by a major local producer highlights the substantial support for Aguia’s locally sourced product and its promise as a Brazilian specialty fertiliser.
The company’s wholly owned Três Estradas phosphate project sits 320 kilometres northwest of Porto Alegre, in the state of Rio Grande do Sul, Brazil. The development was only given the nod of approval to begin mining its phosphate material in May and has wasted no time in presenting the in-demand product to a suite of potential buyers.
Pampafos appears to be striking a chord with local farmers. Southern Brazil’s widespread acidic soils are ideally suited to the product, which Aguia says delivers both agronomic and economic advantages over conventional phosphate fertilisers.
It believes the fertiliser’s edge lies in its gradual-release profile, which maintains phosphorus levels in the soil solution longer during the growing season, providing a steadier nutrient supply to plant roots.
Aguia Resources managing director and chief executive officer Timothy Hoskings said: “These developments demonstrate that Pampafor can compete effectively with conventional phosphorus sources across relevant farming systems in southern Brazil. As a locally produced phosphate fertiliser, Pampafos is well-placed to support stronger supply security for Brazilian agriculture.”
Mr Hosking continued in his praise for Pampafos’ credentials, indicating the company expected sales to continue accelerating as the local agricultural sector kicks off soil preparation ahead of the summer planting season.
With the processing facility at the project now up and running, Aguia says its plant is performing ahead of management’s expectations. Following an unexpected 30 per cent increase in plant capacity during commissioning to more than 200,000 tonnes per annum, the facility is now well positioned to support regular customer deliveries.
While the Brazilian phosphate operation is firing on all cylinders, Aguia is also advancing its Santa Barbara gold operations in Colombia.
Recent updates from the mine showed a threefold increase in monthly production in June to 851.9 grams of gold, along with significant cost reductions and the start of phase three mining a month ahead of schedule.
Although the improvement in gold output is promising, for now, all eyes are on Brazil. After navigating the long road from explorer to producer, Aguia has put its first points on the board with impressive early sales. With a product tailored for the local market, a plant ready to scale and its first revenue locked in, the company looks to have moved into a new, commercially focused chapter in South America.
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By Andrew Todd
