Danakali Ltd (ASX:DNK) has received a notice of initial substantial holder from JPMorgan Chase & Co. and its affiliates.
JPMorgan holds a stake of 20.2 million shares, or 9.12%, in its capacity as investment manager for various clients and custodians.
Shares in Danakali have doubled since the August lows, with the company last trading at $0.41 per share.
The price rise rewards recent capital raisings, including a U.K. based institutional investor who invested A$6.7 million at A$0.33 per share, and also professional and sophisticated investors who invested A$5.5 million at A$0.22 per share.
Danakali holds a 50% equity interest in the Tier 1 Colluli Potash Project, which is located in the East African country of Eritrea.
The Colluli Project Definitive Feasibility Study (DFS) was completed in November 2015 and outlined the production of sulphate of potash (SOP) using a two module development approach, and demonstrates expected industry leading capital intensity and expected bottom quartile operating cost curve position.
The expected mine life at the DFS production rates exceeds 200 years.
Baillieu Holst maintains a Buy recommendation on Danakali. Other broker support comes from Hartleys with a $0.66 price target, and Somers and Partners with a $1.03 price target.
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