TSXV:AAA.P - Post by User
Comment by
Karmanowon Jun 20, 2011 8:25pm
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Post# 18740993
RE: Food for thought
RE: Food for thoughtelmo, also consider the most important part of the equation...the capex to get the resource up and sold..
$2.5 proposed for Sask mine versus $800 million for shallow Ethiopian mine = $1.7 Billion difference to finance
$1.7 billion dollars / 200 million shares of AAA = $8.50 per share that AAA does not have to finance or dilute shareholders with a massive share offering. We just seem to not talk enough about this real cost....
100 meters deep versus 1000 meters deep also is a material factor if we end up being able to Open Pit Mine SOP at 90% extraction rate...you can then triple the actual KCL resource...we will know all in good time...china and india have put their money where their (2 billion ) MOUTHS are....literally
I want to be in a low cost producer....and not in the canadian cartel where we can give them a 10% discount per tonne and charge back $150 per tonne for the SOP....you can not do that in canada...the cartel wont allow creative deal making...Potash One sold for $3.25 per proven and probable tonnes in the ground..KCL has gone up $100 per tonne and we get an additional 75 cents per tonne for our SOP...so $5.00 per tonne measured and indicated and within a year into the proven and probable categories...$5.00 x 126 million tonnes KCL M+I = $630 million / 200 million shares = $3.15 per share AAA...lets have this conversation in two months time when we get the results from the 4 holes in the East and the infill drilling in the Southwest between existing holes...
Remember, those that bought the 6 million shares today are wanting a return..maybe these shares are in stronger hands?
Karma