Millennial Potash earns ‘Buy’ rating in initial coverage from SCP
Millennial Potash Corp (TSX-V:MLP, OTCQB:MLPNF, FRA:XOD) has earned a ‘Buy’ rating in initial coverage from SCP Equity Research analysts, who highlighted the company’s Banio Potash project in Gabon, West Africa, as a high-potential development in the global potash market.
Millennial Potash acquired the Banio project in 2022. The deposit, located near the coast along a planned port expansion, has been compared geologically to producing solution mines in the neighbouring Republic of Congo.
Since the acquisition, the company has drilled and defined a 6 billion ton measured and indicated resource at 15.6% KCl, received strategic development support from the US Development Finance Corporation (DFC), and seen its market capitalization rise from C$12 million to approximately C$350 million, with its share price climbing more than 700%, SCP’s analysts highlighted.
They noted the project’s infrastructure and geographic advantages. “The Banio deposit is huge, near surface, and on the coast,” they wrote. “Its horizons are up to 70 meters thick individually and more than 100 meters cumulatively, which allows for a solution mine with significantly lower capex and opex compared with other global potash projects.”
The analysts also highlighted Millennial’s management team as a key differentiator. They pointed to chairman Farhad Abasov, who co-founded Potash One, which was sold to K+S for C$430 million, served as CEO at Allana Potash, sold to Israel Chemicals for C$170 million, and led Millennial Lithium to a sale to Lithium Americas for C$490 million.
“Management is world-class in identifying and advancing solution potash and lithium projects,” they wrote.
SCP pointed to Banio’s strategic potential as a supplier to South America, Africa, and potentially to replace depleting brine potash resources in Western China.
“The July 2025 US DFC investment was a step in securing Banio for the US and maintaining western ties with Gabon,” the analysts noted, adding that the project could attract M&A interest from established potash solution miners, including Chinese groups.
SCP awarded Millennial a C$5.70 price target, implying upside of about 90% from current levels.
For its valuation, the firm used a discounted cash flow model assuming US$320 per ton received prices, generating a net present value at an 8% discount rate of approximately US$1.08 billion. After adjustments, the team applied a 0.6x NAV multiple to arrive at the C$5.70 per share price target.
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