Key Highlights

  • PhosCo's updated Gasaat scoping study, announced on 9 November 2026, outlines a proposed open-pit phosphate Mining and processing operation in Tunisia.
  • The preliminary development concept targets approximately 1.4 million tonnes of phosphate concentrate annually over a proposed 49-year operating life.
  • The study indicates initial development Capital of approximately USD 199 million, with further technical assessment and project financing required.
  • PhosCo reported AUD 3.84 million in cash at 30 September 2026, while exploration, metallurgical testing and project development activities continued.

PhosCo Ltd (ASX:PHO) is an Australian-listed phosphate exploration and development company focused on mineral projects in Tunisia. Its principal asset is the Gasaat Phosphate Project, where exploration, metallurgical testing and technical studies are being undertaken to assess potential commercial development. On 9 November 2026, the company announced an updated scoping study outlining a proposed open-pit mining operation and phosphate concentrate processing facility, providing a preliminary framework for future project evaluation.

Gasaat Scoping Study Outlines Proposed Development

The updated Gasaat scoping study presents a development concept involving open-pit mining and a flotation processing plant.

The proposed operation would process approximately 2.8 million tonnes of phosphate-bearing material annually to produce around 1.4 million tonnes of phosphate concentrate.

The study outlines a potential operating life of 49 years, subject to further geological, technical, environmental and economic assessment.

Initial development capital is estimated at approximately USD 199 million.

The preliminary financial model also indicates an after-tax net present value of approximately USD 732 million using a 10% discount rate, alongside an estimated internal rate of return of 52%.

These figures represent modelled project outcomes based on the study's assumptions rather than established financial returns.

The scoping study carries an estimated accuracy range of plus or minus 35% and does not establish an Ore Reserve.

Further feasibility work will be required to refine capital expenditure, operating costs, production assumptions and project economics.

Exploration and Metallurgical Activities During 2026

PhosCo continued exploration and metallurgical activities across its Tunisian phosphate portfolio during 2026.

At Gasaat, drilling results announced in August included an intersection of 19.4 metres grading 20.66% phosphorus pentoxide at the KH prospect.

Metallurgical testing reported during the same month produced phosphate concentrate grades ranging from approximately 31.4% to 34%.

These results contribute information about phosphate mineralisation and potential processing characteristics.

The company also progressed exploration at its Sekarna Phosphate Project, where initial scout drilling intersected phosphate-bearing material.

Further assay results and geological interpretation will help determine priorities for subsequent exploration.

The company's development activities remain focused on assessing resource potential, processing methods and the technical requirements for future phosphate production.

Financial Position and Development Funding

PhosCo reported cash and cash equivalents of approximately AUD 3.84 million at 30 September 2026.

Its September quarterly Cash Flow report recorded operating cash outflows of approximately AUD 989,000.

For FY2026, the company reported a net loss after tax of approximately AUD 4.81 million.

In October 2026, PhosCo announced a memorandum of understanding with Tunisian engineering company STUDI International.

The arrangement included a proposed AUD 1.4 million Equity subscription at AUD 0.15 per share, together with attaching options.

The proposed Investment and engineering cooperation represent potential steps towards advancing technical work at Gasaat.

However, development of the proposed mining and processing operation will require substantially greater funding than the company's existing cash resources.

Project Development Risks and Technical Requirements

The Gasaat project remains at the preliminary study stage, with several development requirements outstanding.

The proposed mining operation will require additional technical evaluation, permitting, environmental assessment and financing arrangements before construction decisions can be considered.

The scoping study's economic estimates are sensitive to assumptions concerning phosphate prices, operating expenditure, capital costs, processing performance and production schedules.

The project also requires further assessment of the mineral resources supporting the proposed production profile.

As Gasaat has not established an Ore Reserve, additional technical work will be necessary to determine whether the proposed development can be supported by economically mineable material.

Funding availability and the timing of regulatory approvals will remain important considerations.

What to Watch at Gasaat

The next development priorities include progressing feasibility work, refining the processing design and assessing potential project financing arrangements.

Further exploration and assay results from Gasaat and Sekarna may provide additional information about phosphate mineralisation.

The company will also need to advance the regulatory processes required for potential mining development in Tunisia.

Progress on technical studies, funding arrangements and project approvals will influence the timing of subsequent development decisions.

Key Insights

PhosCo's updated Gasaat scoping study outlines a proposed long-life phosphate mining and processing operation in Tunisia.

The preliminary development concept provides estimates of production capacity, capital requirements and potential project economics.

However, the project remains subject to further feasibility assessment, financing, permitting and technical evaluation before any development decision.