TMR: Which phosphate project in that region most interests you?

JC: There is one company that we don't officially cover, so I can only give general observations. That company is Allana Potash Corp. (AAA:TSX; ALLRF:OTCQX), which has the Danakil project in Ethiopia. The company has published a bankable feasibility study, and now it's just a matter of securing funding. This is the biggest hurdle for junior fertilizer projects. Danakil's capital expenditures (capex) seem manageable at around $650 million ($650M). Allana has a key partner in Israel Chemicals Ltd. (ICL:TASE), a top-seven global potash producer, which has a 16% equity stake and an offtake agreement.

Allana also has support from some global development banks and foresees commercial production by the second half of 2016. We think the company is in a good spot, especially given the potential of supplying to India, a top-three potash importing country with a lot of upside demand. Allana is definitely seeing support from the Ethiopian government, and infrastructure is being built to support the project. This is a company investors should be looking at.

TMR: Danakil's infrastructure is dependent upon the construction of a port in Djibouti, correct?

JC: The Djibouti port and the rail lines to support it are part of the plan to get Danakil up to a million tons annually, and even expanding that. The Chinese are involved in this.

TMR: How do you rate Allana's management?

JC: Very knowledgeable, with a lot of experience in the agriculture space. Allana's management also understands capital markets, which is critical.

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