PhosCo's simplified flotation at Gasaat yields 31.4% P2O5 with 83.7% recovery; updated Scoping Study due Q3 2026 will quantify cost reductions.
Alpha Score of 43 reflects weak overall profile with moderate momentum, weak value, weak quality. Based on 3 of 4 signals — score is capped at 90 until remaining data ingests.
PhosCo (ASX: PHO) has released metallurgical test results that replace a multi-stage flotation process with a single-stage approach at its Gasaat Phosphate Project. The simplified flowsheet eliminates three silica flotation steps, a change that reduces capital expenditure, operating expenditure, and technical risk. An updated Scoping Study incorporating these results is scheduled for Q3 2026.
First-pass tests on the KM prospect achieved a phosphate concentrate of up to 31.4% P2O5 with recoveries between 75.1% and 83.7%. The previous design required multiple flotation stages to remove silica. The new results show a single stage can deliver commercial-grade concentrate.
The metallurgical work removed three sequential silica flotation steps from the planned process. Each elimination reduces the physical plant footprint, equipment requirements, and energy consumption. The simplified circuit lowers both upfront construction costs and ongoing operating expenses. Concrete numbers for these savings remain unavailable; the Scoping Study will provide the first estimates.
PhosCo described the results as a breakthrough that could meaningfully improve project economics. The tests used material from the KM prospect, one of two deposits with maiden JORC 2012 resource estimates announced earlier in 2026.
Saline Gasaat bore water can likely be used in the flotation process with minimal or no cleaning. This avoids the expense of a dedicated water treatment plant and reduces reliance on fresh water sources. In the project's remote location in Tunisia, water infrastructure represents a material cost line. Using untreated bore water directly lowers one of the larger operating cost components and reduces environmental permitting complexity.
The metallurgical results build on recent resource work. The KM and SAB deposits together total 20.2 Mt at 20.5% P2O5 under the JORC 2012 code. The broader Gasaat Project now holds a global resource of 166.6 Mt at 20.6% P2O5, with 92% in Measured and Indicated categories. That classification reduces geological uncertainty and supports higher confidence in mine planning.
Earlier drilling at KM confirmed thick, shallow phosphate mineralisation with good geological continuity. At the DOH prospect, drilling identified significant mineralisation across a 1,300m strike length and over 600m width. These zones offer potential for resource growth beyond the current inventory.
PhosCo completed a $5M placement in February 2026, providing working capital to advance the project through the next study phases. The company has not announced additional capital requirements for the updated Scoping Study. The existing funding should cover bench-scale optimisation, pre-feasibility study test work, and the Scoping Study itself.
PhosCo has not provided specific capital expenditure or operating expenditure reduction figures. The Scoping Study will translate the process simplification into dollar terms. Investors will need to see whether the savings are material enough to shift the project's internal rate of return or payback period. Without quantified numbers, the stock trades on technical promise rather than demonstrated economics.
Risk to watch: quantified cost reductions in the Scoping Study will determine whether the process simplification translates into a viable development project.
The Q3 2026 target leaves roughly six months for additional test work and engineering. Key next steps include bench-scale optimisation and pre-feasibility study test work. These stages will confirm whether the single-stage flotation process works consistently across different ore types within the deposit. Variability in ore mineralogy is a common risk in phosphate projects. Any delays in bench-scale results or unexpected metallurgical variability could push the study into late 2026 or early 2027.
Phosphate prices have been under pressure in early 2026, though the project's low-cost aspiration may still support development at current price levels. A weaker phosphate price environment at the time of the Scoping Study release would make the cost reductions more critical.
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PhosCo's process simplification is a genuine technical advance. The market needs to see the numbers. The Scoping Study will be the first real test of whether lower process costs translate into a viable development project.
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