TSXV:AAA.P - Post by User
Comment by
Ethanbrodieon Feb 26, 2014 1:17am
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Post# 22251400
RE:RE:potash market summary - increased demand
RE:RE:potash market summary - increased demandI will say this that is positive for Allana... IF that's a big IF the discount is only "average" like the 5-10% discount that ICL will get, its not that bad. This is why. We should be able to make that up because of our location. If pot of sask was going to feed africa and/or southeast asia and/or india their potash, the REALISED price would have to be at a premium to the :contracted potash price: The deals for say 1 million tonnes at 315 or 325 are the BEST pricing. Its because of volume. For smaller shipments (ones going to africa/southeast asia) are smaller and will demand a premium to that 315 to 325. It would be about a 10% at least premium. Next, We can get that potash there at a cheaper price than POT or virtually anyone else. So, we will see even more pricing power and be able to sell the potash at about what POT or competitors would sell it at Which is say 320 plus 10% because of reduced volume ,plus the further savings that we saved by getting reduced shipping costs. which would be about another 10%. I think this is something alot of people miss.