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WESTERN POTASH CORP T.WPX

"Western Potash Corp is engaged in the acquisition, evaluation, and exploration of mineral properties containing potash in Western Canada. The Company holds interests in the Milestone Project located in Southern Saskatchewan."


TSX:WPX - Post by User

Bullboard Posts
Comment by smartinvest78on Oct 24, 2012 5:43pm
261 Views
Post# 20520190

RE: RE: RE: KRN

RE: RE: RE: KRN

I don't agree. There are two critical reasons why KRN cannot attract partner or take-over buyers:

1. Their production cost is too high, correct me if i am wrong, it is approx. $130/ton. WPX production cost is only $63/ton.

2. Their KCL grade is too low. According to what I know, their average KCL grade is below 20%. Their MgCL grade is well too high, which make it very difficult to get the KCL out by solution mining. That is why they need a new solution technology for mining and they have to sell MgCL as a by-product to reduce the cost. Contrastly, WPX average KCL grade is 29% and MgCL grade is very low.

POT cuts back production because they want to keep the potash price high, it is called price manipulation. That is why I see India and China may need their own potash mines if they don't want to see their fate is controlled by somebody else. 

Bullboard Posts