Sage Potash Completes a PEA That Delivers After-Tax NPV of US$502 Million and IRR of 39%
Sage Potash (OTCQB: SGPTF) announced positive results from its Preliminary Economic Assessment (PEA) for the Sage Plain Potash Project in Utah. The project demonstrates compelling economics with an after-tax NPV of US$502 million and 39% IRR. The project features a premium potash deposit with 298 million metric tonnes of inferred resources at 42.1% KCl grade.
The initial production facility will have a capacity of 300,000 metric tonnes per year, requiring a modest start-up CapEx of $155 million. The project is expected to be cash flow positive within 2 years and achieve payback within 5 years. Located strategically in San Juan County, Utah, the project aims to serve the US market, which currently imports over 95% of its potash requirements.
Sage Potash (OTCQB: SGPTF) ha annunciato risultati positivi dalla sua Preliminary Economic Assessment (PEA) per il Sage Plain Potash Project nello Utah. Il progetto mostra una redditività interessante con una NPV post tasse di US$502 milioni e IRR del 39%. Il progetto presenta un deposito premium di potassio con 298 milioni di tonnellate metriche di risorse inferite a una gradazione di 42,1% KCl. La prima struttura di produzione avrà una capacità di 300.000 tonnellate metriche all'anno, richiedendo un CapEx iniziale di US$155 milioni. Si prevede che il progetto sarà in flusso di cassa positivo entro 2 anni e raggiungerà il payback entro 5 anni. Situato strategicamente nella contea di San Juan, Utah, il progetto mira al mercato statunitense, che attualmente importa oltre il 95% delle sue esigenze di potassio.
Sage Potash (OTCQB: SGPTF) anunció resultados positivos de su Preliminary Economic Assessment (PEA) para el Sage Plain Potash Project en Utah. El proyecto demuestra una economía atractiva con un NPV después de impuestos de US$502 millones y un IRR del 39%. El proyecto presenta un depósito premium de potasa con 298 millones de toneladas métricas de recursos inferidos con un grado de 42,1% KCl. La instalación de producción inicial tendrá una capacidad de 300.000 toneladas métricas por año, requiriendo un CapEx inicial de US$155 millones. Se espera que el proyecto genere flujo de caja positivo en 2 años y alcance el payback en 5 años. Ubicado estratégicamente en el condado de San Juan, Utah, el proyecto apunta al mercado estadounidense, que actualmente importa más del 95% de sus requerimientos de potasa.
Sage Potash (OTCQB: SGPTF)는 유타주 Sage Plain Potash Project에 대한 예비 경제성 평가(PEA)에서 긍정적 결과를 발표했습니다. 이 프로젝트는 세후 NPV US$502백만 달러와 IRR 39%의 매력적인 경제성을 보여줍니다. 이 프로젝트는 42.1% KCl 등급의 298백만 톤의 추정 자원을 가진 프리미엄 포타시 매장층을 특징으로 합니다. 초기 생산 시설은 연간 30만 톤의 생산 능력을 가지며, 초기 CapEx US$155백만 달러가 필요합니다. 프로젝트는 2년 이내에 현금 흐름이 양호해질 것으로 예상되며 5년 이내에 손익분기점을 달성합니다. 유타주 산후안 카운티의 전략적 위치에 있으며, 미국 시장에 공급하는 것을 목표로 하여 미국은 현재 포타시 수요의 95% 이상을 수입하고 있습니다.
Sage Potash (OTCQB: SGPTF) a annoncé des résultats positifs de son Preliminary Economic Assessment (PEA) pour le Projet Sage Plain Potash dans l’Utah. Le projet présente une économie convaincante avec une VAN après impôt de US$502 millions et un TRI de 39%. Le projet dispose d’un gisement premium de potasse avec 298 millions de tonnes métriques de ressources inférées à une teneur de 42,1% en KCl. L’installation de production initiale aura une capacité de 300 000 tonnes métriques par an, nécessitant un CapEx initial de US$155 millions. On prévoit que le projet sera rentable dès les deux premières années et atteindra le remboursement en 5 ans. Situé stratégiquement dans le comté de San Juan, Utah, le projet vise le marché américain, qui importe actuellement plus de 95% de ses besoins en potasse.
Sage Potash (OTCQB: SGPTF) kündigte positive Ergebnisse aus seiner Preliminary Economic Assessment (PEA) für das Sage Plain Potash Project in Utah an. Das Projekt weist eine überzeugende Wirtschaftlichkeit mit einem nach Steuern berechneten NPV von US$502 Millionen und einer IRR von 39% auf. Das Projekt verfügt über ein Premium-Potash-Vorkommen mit 298 Millionen metrischen Tonnen inferierter Ressourcen bei einem Gehalt von 42,1% KCl. Die anfängliche Produktionsanlage wird eine Kapazität von 300.000 metrischen Tonnen pro Jahr haben und erfordert ein modest Startkapital von US$155 Millionen. Es wird erwartet, dass das Projekt innerhalb von 2 Jahren positive Cashflows erzielt und eine Amortisation innerhalb von 5 Jahren erreicht. Strategisch im San Juan County, Utah gelegen, zielt das Projekt auf den US-Markt ab, der derzeit über 95% seines Potash-Bedarfs importiert.
Sage Potash (OTCQB: SGPTF) أعلنت نتائج إيجابية من التقييم الاقتصادي الأولي PEA لمشروع Sage Plain Potash في يوتا. يُظهر المشروع اقتصاديات مقنعة مع NPV بعد الضرائب بمقدار US$502 مليون ومعدل عائد داخلي IRR بنسبة 39%. يضم المشروع ترسب بوتاس مميز مع 298 مليون طن متري من الموارد المستدلّة بعُنصر KCl بنسبة 42.1%. ستتمتع منشأة الإنتاج الأولى بـ قدرة 300,000 طن متري سنوياً، مع حاجة إلى رأس مال بداية CapEx قدره 155 مليون دولار. من المتوقع أن يصبح المشروع سالب التدفق النقدي موجباً خلال عامين وتحقيق الاسترداد خلال 5 سنوات. يقع بشكل استراتيجي في مقاطعة سان خوان بولاية يوتا، ويهدف إلى خدمة السوق الأمريكية التي تستورد حالياً أكثر من 95% من احتياجاتها من البوتاس.
Sage Potash (OTCQB: SGPTF)宣布了其在犹他州 Sage Plain Potash Project 的初步经济评估（PEA）的积极结果。该项目显示出有说服力的经济特征，税后净现值（NPV）为美国美元 5.02 亿，内部收益率（IRR）为 39%。该项目具备一个 premium 脱盐钾矿床，推断资源为 2.98 亿公吨，KCl 品位为 42.1%。初始生产设施的产能为每年 30 万公吨，初始资本支出为 1.55 亿美元。预计该项目将在 2 年内实现现金流为正，并在 5 年内实现回本。该项目战略性地位于犹他州圣胡安县，旨在服务美国市场，而美国目前进口超过 95% 的钾需求。
- None.
- Resource currently classified only as inferred, requiring further delineation
- Project requires additional permitting and engineering work
- Requires $327 million in total CapEx over project life
PEA Highlights
Compelling project economics with US
$502 million * unlevered and after-tax Net Present Value (NPV8% ) and39% * Internal Rate of Return (IRR).A premium potash deposit with an inferred resource of 298 million metric tonnes, with
42.1% KCl grade (26.6% K2O) and less than 1 percent insolubles and0.01% carnallite.A critical mineral potash project that supports domestic production with potential for scalable incremental capacity and resource expansion.
Cash flow positive in 2 years and rapid investment payback within 5 years attributable to advance status of permitting, engineering and short timeline to production.
Significant US (United States) in-market transportation cost advantages.
Industry low start-up project Capital Expenditures (CapEx) of
$155 million including$26 million contingencies and$16 million construction indirect costs (combined27% of total project).
Cautionary statement: Readers are cautioned that the PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. The Company has not defined any mineral reserves for the Project. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
Vancouver, British Columbia--(Newsfile Corp. - September 22, 2025) - Sage Potash Corp. (TSXV: SAGE) (OTCQB: SGPTF) ("Sage Potash" or the "Company"), a Canadian company focused on advancing its Sage Plain Potash Project (the "Project") in the Paradox Basin, Utah, is pleased to announce the results of a positive Preliminary Economic Assessment ("PEA"). The PEA highlights the potential for robust project economics, a significant domestic resource base, and growth potential to establish a scalable and sustainable potash production hub in the United States.
CEO Commentary
Peter Hogendoorn, Chief Executive Officer of Sage Potash, stated:
"This PEA reinforces our conviction that our proposed approach of incremental potash production using solution mining is a cost effective and low risk strategy to bring in-market potash production on-line in the US. We expect this approach would allow us to scale up production with cash flow to eventually become the largest domestic potash supplier in the US market. Currently, the US market imports more than 95 percent of its potash requirements and Sage Potash's goal is to become a supplier of choice in the United States. The possibility of high margins and scalable expansion suggested by the PEA makes for a robust asset with stability through a wide range of market conditions."
President Commentary
Tim Mizuno, President and Chief Operating Officer of Sage Potash, added:
"The PEA suggests that we can support the critical agricultural and food security needs of the US market and deliver meaningful value to shareholders. This is an exceptionally accretive potash project with a high grade and expansive potash resource. Sage Plain is one of the best potash projects I have seen in the decades I've spent in the industry and foundational to me joining the Company earlier this year. As we advance toward production, we expect to further de-risk the Project and build strong partnerships with farmers and the broader agricultural industry."
PEA Overview
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The PEA was completed by Sage Potash in partnership with RESPEC, a leading engineering firm specializing in integrated technology solutions for mining, energy, infrastructure, water and natural resources. The PEA includes design of an initial solution-based mining and production unit for an annual capacity of 300,000 metric tonnes (mt) per year delivering an average of approximately
The Project is located in San Juan County, Utah, in close proximity to the agricultural areas in the Pacific Northwest region of the United States. The PEA estimates an inferred mineral resource of 298 million mt in-situ sylvinite equating to approximately 118 million mt KCl within a 2,400-meter radius of drilled wells. This radius represents approximately 4 percent of the approximately 26,000 acres of leased mineral rights. This resource can support multiple phases of production and does not include potential results from Bureau of Land Management prospecting permits accounting for another 58,780 acres.
Utah Paradox Basin Deposit and Sage Potash
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The PEA will be filed with Canadian securities regulatory authorities and available on SEDAR+ within 45 days of this announcement. When available, readers are encouraged to read the PEA in the Company's technical report ("Technical Report") prepared pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("43-101") in its entirety, including all qualifications, assumptions and exclusions that relate to the PEA and mineral resource model. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.
ECONOMIC Overview
The economic analysis in the PEA includes the proposed construction of a 300,000 mt per year potash plant with an initial development plan of 7 caverns and growing to 15 caverns over the first 5 years of production. Sage Potash plans to complete an already permitted exploration well designed to production specifications to confirm cavern porosity and flow rates, which will then be converted to the Company's first production well. Results from this well may result in lowering cavern requirements.
Potash would be produced through an initial 300,000 mt plant accessing the potash resource from the upper and lower potash horizons of Cycle 18. Processing for recovery of potassium chloride (KCl) uses triple-effect evaporators, crystallization and fluidized bed dryer for the removal of sodium chloride (NaCl) and recovery of KCl. This method requires minimal amounts of fresh water when compared to solar evaporation methods and allows the facility to operate year-round. This approach may be replicated and scaled in future Project considerations.
With the mine to be located in-market and close to domestic demand, the Project has an economic advantage relative to other sources of potash located outside of the United States. Additionally, construction and operation of the proposed mine is de-risked by advanced engineering, advanced permitting and the inclusion of potash as a critical mineral in the US.
Initial project CapEx of
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Economic Model Assumptions
| NPV (After Tax Unlevered) | |
| IRR (After Tax Unlevered) | |
| Total Cash flow | |
| Payback period Cash flow positive | 5 years 2 years |
| Sales Price(1) | |
| Discount rate | |
| Start-up Capital Expenditures | |
| Solution Mining | |
| Plant and Infrastructure | |
| Construction Indirect Costs | |
| Contingencies | |
| Total |
(1) The sales price of
Simplified Facility Layout
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OPERATIONS Overview
The Project is strategically located in San Juan County, Utah, in the United States close to agricultural markets. Utah has been ranked a top US State in terms of business and trade opportunities and mine development - which has supported the Company's advancement of construction planning and permitting.
The United States is heavily reliant on potash imports, sourcing more than
Over the life of the Project, we expect to produce an annual average gross margin of
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Operational Model Assumptions
| Items | Units | Annual Steady State Production Years | All Years |
| Saleable Tonnes of Muriate of Potash (MOP) | mt | 300,000 | 5,630,000 |
| Sales Price(1) | $/mt | ||
| Operating Cost | $/mt | ||
| Gross Revenue | $Millions | ||
| Operating Cost | $Millions | ||
| EBITDA* | $Millions | ||
| Operating Cash Flow* | $Millions | ||
| Capital Items | $Millions | ||
| Free Cash Flow* | $Millions |
(1) The sales price of
RESOURCE Overview
The Project is underpinned by a significant potash resource located in the Paradox Basin, a geologically favorable region with a proven history of solution mining. Inferred Resources are derived from Cycle 18's upper and lower potash horizon, some of the highest quality potash resource globally.
The Technical Report authors have confidence in the classification of the resource as an "inferred resource" using recent and historical well results, because the Paradox Basin is very well explored with published maps of the high-grade potash beds, and the 2D seismic showed bedding continuity.
Inferred total potash resource: 298 million mt; a potash deposit that supports the potential for production and significant future incremental capacity expansion potential.
Inferred potash resource: 118 million mt KCl (
42.1% ) and 74.8 million mt K2O (26.6% )Upper Potash Bed: 72 million mt KCl (
46.1% ) and 45.8 million mt K2O (29.1% )Lower Potash Bed: 46 million mt KCl (
35.8% ) and 29.0 million mt K2O (22.6% )
Flat lying potash deposits with up to 7.3 meter potash seams with virtually no carnallite or insoluble content.
Potential Upper Bed Potash Quantities: 460-530 million mt (25
-29% K₂O| 40-46% KCl) within 2,400-5,000 meters of Johnson 1 drilled well.
Next Steps
With the completion of the PEA, which includes favorable environmental and cultural study results, Sage Potash intends to accelerate efforts towards further delineating the resource by converting inferred resources to measured and indicated resources, and evaluating many of the Project optimization and upside opportunities. This includes:
Drilling an already permitted exploration well to confirm final cavern concentrations and flow rates to complete and submit a solution mine plan, upon which the well will be converted into an initial production well.
Advancing plant and solution mine engineering and plans to support the issuance of the Large Mine Operations permit.
Advancing commercial initiatives including potential off-take agreements and industry partnerships.
Progressing logistics and financing for moving the Company's secured plant and equipment into Utah.
About Sage Potash Corp.
Sage Potash Corp. (TSXV: SAGE) (OTCQB: SGPTF) is a Canadian company dedicated to the development of its flagship Sage Plain Potash Project, located in the Paradox Basin, Utah. With a large and high-grade resource base, the Company is advancing toward its goal of establishing a secure and sustainable domestic potash production platform in the United States. Sage Potash is committed to food security, environmental stewardship, and creating value for shareholders and stakeholders alike.
For more information, please visit: www.sagepotash.com.
On behalf of the Board of Directors
Peter Hogendoorn - Chief Executive Officer; (604) 764-2158
Tim Mizuno - President and Chief Operating Officer
For further information, please contact:
Marcus van der Made
E: IR@sagepotash.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Qualified Persons as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects. Qualified Persons are:
Erik Hemstad, Professional Engineer (PE),of RESPEC Company LLC
Dr. Susan B. Patton, RM-SME, of RESPEC Company LLC
Kathy Adams, PEng, PE, of Paterson & Cooke USA Ltd
Dr. R. Nick Gow, QP-MMSA, of Paterson & Cooke USA Ltd
Use of Non-GAAP Financial Measures
This news release contains certain financial measures and ratios that do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and may not be comparable to similar measures presented by other issuers. These non-GAAP measures are provided as supplemental information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.
Management uses these measures internally to evaluate operating performance, project economics, and liquidity, and believes they provide investors with additional insight into the Company's financial and operational results. However, investors are cautioned that non-GAAP measures do not have any standardized meaning under IFRS and may differ from similar measures used by other companies.
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities laws relating to the potential development of the Sage Plain Potash Project, including statements regarding economic potential, future production, permitting, and other matters discussed in the PEA. Forward-looking information is based on assumptions and involves known and unknown risks and uncertainties that may cause actual results to differ materially. Sage Potash does not undertake to update forward-looking information except as required by law. Investors are cautioned that the PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. The Company has not defined any mineral reserves for the Project. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
Note all amounts are denominated in US dollars and metric tonnes.
*Refer to “Use of Non-GAAP Financial Measures” section of this news release for more information.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/267506
FAQ
What is the NPV and IRR of Sage Potash's (SGPTF) Preliminary Economic Assessment?
How much potash will Sage Potash's Utah project produce annually?
What is the total inferred resource at Sage Potash's Sage Plain Project?
How much initial capital investment does Sage Potash need for the project?
What is the expected annual free cash flow for Sage Potash's Utah project?
When will Sage Potash's project become cash flow positive?
