RE:RE:RE:GSPsw248, all of these junior potash hopefuls are in a really tough spot right now.
Super high natural gas prices currently seen will dramatically increase costs of any mines OPEX, and as all of these solution mines are heavily reliant on natural gas, what is the break even number for economic feasibility? These juniors rely on FS reports to obtain financing from deep pockets and if the numbers dont line up, well you know where that discussion ends.
GSP is also relying on an unproven technology, so that is firmy entrenched in the unknown column.
Add that to the fact that potash is and always has been a cyclical commodity, and with the western sanctions hampering shipping of Russian and Belarusian potash, the other major global producers have ramped up production to capitalize on Russias restrictions.
Sad reality though, is although heavily restricted, Russian potash is still being sold and delivered, so at some point a global over supply will occur knocking prices way back down to earth, and with all of these juniors at least 3 years away from production, where in the cycle does that construction timeline fall?
Ideally if GSP commenced construction when ESSELs involvement was announced, the mine may have been built already, and GSP could capitalize on these sky high potash prices, but it wasnt and isnt
This is no revalation to big money, so where does that leave these junior potash hopefuls having to rely on big money to get a shovel in the ground. The time to prosper from high potash prices is being in production already, not chasing a current market hoping it will still be there 3 years from now.
Westerns progress has been much slower than I expected once they announced their full steam ahead strategy, so it is difficult to know if their cavern tweaks are increasing surface dissolutionin rates or not.
Lets see how Beechy / PADCOM mine makes out in a few months time, as their success may shine a glimmer of light on the other potash hopefuls relying on similiar technology.
The Beechy group has been in this game for decades trying to perfect this technology and have proven successful bench testing and computer modelling of their techniques on several levels, but that is much different than actual mining.
Theoretical does not always equate to factual and if Harvey and his team cant pull this salty rabbit out of the hat, I dont know who can..............