ValuationMdj - In the press release from WPX I read, they have a year of prep before starting construction. As for valuation, their market cap matches their cash. Revenues after completion will be $60 mm. KRN with one plant will be $280 mm without mag and a lot more debt. What does that translate into? We will see what the market thinks in due course. Really depends on total cost and how much is left? Based on current numbers and if they have retained earnings of about $75mm in 3 years, calculated on 5.5 P/E you get to the mid teens? Question is what is the deal and what will be the total costs. Can they get production up to 700,000 mtpy by 2019..... More things we will just have to wait and see.
Do more investors get involved? If Magnesium isn't part of the current development that is where they will be focusing their attention depending on demand for high grade potash. They have a standing order, but still need to confirm the quality once producing. Until market conditions for potash improve considerably, you won't see a second potash mine at least until the first one is producing. A Pilot Plant will help the bottom line a little and hopefully raise interest from new buyers for their product and investors for future growth. Will probably still take a while.