Migao Corp MIGGF

Russian Potash Exports

[SurfForWealth]

I don't think I have posted on SH in a few years but I need to add my 2 cents here. I hold a position in MGO & added yesterday. I cannot understand why the stock is getting clobbered over this Russian Potash agreement. Currently MGO sources their potash from the 2 largest Russian Exporters, Uralkali & Silvinit. Those 2 companies are in the process of merging. It is very close to closing. Combined they currently control 42% of global Potash exports through their export arms BPC & IPC. While I have not been able to find any confirmation that the combined merger will also merge their export entities or any indication of the name Potash Export Company (PEC), it seems logical that the MGO use of the term PEC is just a generic name for the time being. Perhaps the real source of the deal needs to be kept quiet while the merger is taking place? As a percentage of the amount of Potash that MGO could purchase over a ten year period beginning in 2013, the $100M pre-payment is not that much. Yet the market have chopped over $200M of market cap since this announcement in March. This link leads to a presentation in english over the proposed merger with lots of info on the global potash market. As for the effect of the TRE fiasco, I hardly think MGO has any similarities or correlation except for their operations being in China. I hope the link works. There was a warning about not for Canadians you may see.

https://www.urkasilv-merger.com/upload/urkasilv_en.pdf