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A top penny stock to add to your watchlist is otcmkts:drrsf (Arianne Phosphate Inc). This company engages in the exploration and acquisitions of mining properties throughout Canada. The main focus is developing Lac Ã Paul phosphate rock project, which is located in Quebec. The company was founded in 1997 and is based in Chicoutimi, Canada.
The company actively develops the Lac à Paul phosphate deposits located in Saguenay/Lac St. Jean area of Quebec. The deposits produce high-quality apatite concentrate grading 39% P2O5, containing very few contaminants.
otcmkts:drrsf – Company Overview
The company was previously known as Arianne Resources Inc and changed its name to Arianne Phosphate Inc. The stock is currently listed on the Toronto Stock Exchange under the symbol DAN. The company explores and develops one of its most significant deposits in the country, producing top-quality contaminant-free phosphate rock concentrate.
otcmkts:drrsf vision is to be recognized as a leader in the mining industry, excelling in management and environmental issues. It is ultimately maximizing the shareholder’s maximum value. Arianne conducts responsible development throughout its mining operations and exploration, together with its team’s strong leadership and expertise.
The organization aims to be at the cutting edge of innovation and believes that these values guide the company’s actions and practices for continuous improvement.
Lac Ã Paul phosphate rock project
This operation is the company’s primary focus and consists of an open-pit phosphate mine located in Quebec, Canada. The pit produces 55 000 tonnes of ore that are processed, producing 3 million tonnes of phosphate concentrate every year. The company will create roughly 1000 direct and indirect jobs throughout the 26-year life of the mine.
During the 90s, the first phosphorus was discovered in the area of Lac à Paul. When global demand increased in 2008, the company made all the necessary efforts to develop the project.
What is Phosphorus?
It is an atom found in the chemical composition of RNA, DNA, ATP, and phospholipids forming the cell membranes. These components primarily contain an essential role in converting energy. Phosphorus is also critical to transferring genetic information, photosynthesis, energy storage transfer and is central to life with no substitute.
The primary uses for phosphorus
7% of the processed phosphate rock is intended for animal food supplements.
Phosphorus is also used in the production of fertilizers, with 87% of phosphate rock’s product processing. Phosphorous is a crucial component, including potassium and nitrogen.
Some other uses of Phosphorus
6% is mainly used in various products, including preservatives, beauty products, water treatment, and corrosion inhibitors.
ARIANNE PHOSPHATE’S CONCENTRATE
This deposit is one of the few phosphate magmatic deposits in North America. The product stands out in international markets because of the results obtained by a feasibility study, demonstrating 38.6% of phosphate rock concentrate.
otcmkts:drrsf believes in creating safer phosphate with various phosphates coming from North Africa, United States, and the Middle East. This represents 85% of global deposits, and they are likely to contain impurities including, cadmium and uranium, and heavy metals.
Both Europe and America are vital importers of phosphate. At the end of 2018, European institutions agreed on limiting the amount of cadmium in fertilizers to 60kg. Throughout Canada and The States, issues with phosphate safety have not been addressed by governments currently. ARIANNE believes that the Canadian government should legislate to minimize cadmium and radioactive elements in fertilizers, and products, to protect its population.
Arianne Phosphate’s Product
otcmkts:drrsf will produce high-grade phosphate concentrate with low levels of contaminants. The project produces 3 million tonnes of phosphate concentrate every year for the next 26 years. The company reduces greenhouse gases with the use of hydropower throughout its operations. The end product produced will be perfected to eliminate acids or starch and caustic soda, ultimately minimizing environmental impact
Arianne Phosphate Stock
The company is currently trading at 0.4200 and has increased by 17.09% at this article’s time. The 52-week range is between 0.1000-0.4400, with a volume of 81,126.
The earning date is due on March 28, 2021, and the company does not offer a dividend yield at this time. There is no PE Ratio, and the company market capitalization is 73,974 Million.
Arianne Phosphate News
otcmkts:drrsf Significantly Reduce its Debt and Extends its Credit Facility
The company agreed with a secured lender Mercury Financing Corp. The lender will exercise its 26,780,000 warrants, reducing the amount owed from approximately $6.6 Million to $24.9 Million. The lender will extend the loan under the credit facility for five years, reducing the annual interest to 8%.
Brian Ostroff, CEO, commented. This is excellent news for the shareholders. The company has removed the concern for its shareholders and enables the company to move forward from a solid foundation.
This agreement will allow the company to reduce its overall debt. It will ultimately save the company $3 million every year in interest payments.
Mercury will become a major shareholder with over 17% equity holdings.
The deal arrived at the perfect time for the company. Throughout the years otcmkts:drrsf has been weathering a difficult macro. The company have now advanced its Lac a Paul project, which is the company’s key asset.
We are now witnessing drastic improvements in the agriculture industry sector, with grains trading at year highs. This has ultimately led to an increased price in phosphate fertilizers, with prices doubling throughout the last year. This will enable the company to advance and puts us at an advantage in unlocking substantial growth and returns for investors and shareholders.
otcmkts:drrsf Financial Results for 4th Quarter and Year 2020
The company is pleased to report its financial results for the year ending December 31, 2020
The company did not generate positive revenue for 2020 primarily because it’s a development stage organization. Arianne did incur a net loss of $1.6 million compared to the previous year resulting in a $2.1 million loss. Their losses are mainly because of the company’s borrowing cost, which was previously capitalized. The company has now suspended its borrowing costs until further technical work on the project is carried out. Those are non-cash costs.
Brian Ostroff, The CEO, commented. Even despite the decline of phosphate prices, the company has advanced its project in its Lac à Paul deposit.
Despite the challenges of the pandemic, the company continues to advance its asset towards development. We are now in a position to take advantage of the improved macro. Increasing phosphate and grain prices over the year have highlighted the importance of our high-quality asset. We are driving efforts to secure the partners required for the development of Lac à Paul. Adding to this, the company’s debt reduction has ultimately improved our financial position, allowing us to reduce debt by $12 million.
Company Outlook for 2021
The company will focus on its Lac à Paul project and expects completed financing and partnership agreements as they continue to enhance the project’s value. The company will also continue a dialogue with its stakeholders.
otcmkts:drrsf Enters An Agreement in Principle With the Port of Saguenay for the Construction and use of a North Shore Facility.
The company reached an agreement with Port of Saguenay regarding the maritime loading facility on the north shore. This will enable both parties to finalize the details regarding costs, operations, and facility construction. Arianne will ship its phosphate concentrate from the facility globally. The agreement covers the facility’s use for 30 years, which will then be renewable twice every ten years.
Brian Ostroff, CEO, commented. Our company believes that transportation and logistics are a significant element, like any globally traded commodity. When the phosphate is loaded on the ship, the ship can send it anywhere. The company will enjoy tremendous economies of scale. The agreement arrived at the right time, with phosphate demand on the rise, ultimately driven by improved agricultural macro and application, including Lithium Iron Phosphate, used for car batteries.
Jean-Sébastien David, COO, commented. The agreement comes at the right time when the company was in close co-operation with the port and local authorities. With this 50-year agreement otcmkts:drrsf will be in a solid position to supply global customers from our premier asset Lac à Paul project.
The port of Saguenay has operational facilities on the south shore of the Saguenay River. It is the central commercial hub, receiving shipments and various goods all year round.
Arianne will sell to the north port, a parcel of land on the north shore, allowing for loading and construction, serving as an international gateway to commercial centers.
Arianne’s vision is to be recognized as a mining industry leader, excelling in management and environmental issues. It is ultimately maximizing the shareholder’s value. Its main asset is Lac Ã Paul phosphate rock project, producing 3 million tonnes of phosphate concentrate every year.
otcmkts:drrsf will produce high-grade phosphate concentrate with low levels of contaminants. The project produces 3 million tonnes of phosphate concentrate every year for the next 26 years. The global demand for phosphate concentrate is ultimately increasing every year, especially phosphate containing almost no contaminates.
The organization is in an excellent position to reduce greenhouse gases using hydropower throughout its operations. This procedure ensures fewer contaminants and is environmentally caring as well.
We discovered how otcmkts:drrsf is reducing its debt through a significant lender. The amount owed is $6.6 Million to $24.9 Million. The lender will extend the loan under the credit facility for five years, reducing the annual interest to 8%. The lender’s agreement puts Arianne in a more solid financial position, enabling them to concentrate fully on its developments and exploration. Ultimately it will save the company $3 million every year in interest payments.
The company has now advanced its Lac a Paul project, which is the company’s key asset.
They are now witnessing drastic improvements in the agriculture industry sector, with grains trading at year highs. This has ultimately led to an increased price in phosphate fertilizers. This will enable the company to advance and puts them at an advantage to unlock substantial growth and returns for investors and shareholders.
The company does have its shareholders and investors in mind, ultimately making their company a leader in developing and exploring phosphate properties globally. There is no doubt this company will become a key player in their sector, adding value and growth to shareholders.
Advancing phosphate and grain prices over the year have highlighted the importance of our high-quality asset. We are driving efforts to secure the partners required for the development of Lac à Paul. Adding to this, the company’s debt reduction has ultimately improved our financial position, allowing us to reduce debt by $12 million.
With a positive company outlook for 2021, otcmkts:drrsf will focus on its Lac à Paul project. It expects completed financing and partnership agreements as they continue to enhance the project’s value.
When the company agreed in Principle with the Port of Saguenay, it enabled them to ship its phosphate concentrate from the facility globally. The agreement covers the use of the facility for 30 years. This is excellent news for both the company and shareholders, putting Arianne in a more secure position to conduct a global supply to a growing marketplace. The company will scale its operation and strong positioning to supply international customers from their premier Lac à Paul project.
otcmkts:drrsf is a promising company with tremendous growth potential, mainly due to the increased market demand for phosphorus properties globally. The company plan to scale up their operations throughout the years to come, making it a leader in the mining industry and a potential growth stock for investors and shareholders.
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