Gensource Potash Corp V.GSP

Deals are getting done

[CloudyAlways]

Looks like there is an appetite for new potash projects. Highfield just got their debt piece approved. GSP already has its senior loan approvaed, equity piece is going to be next! 


https://www.icis.com/explore/resources/news/2022/10/24/10817993/spain-highfield-resources-receives-financing-approval-for-muga-potash-project/

[Relaxing]

Cloudy thanks for this . I see Soc Gen is also partially financing the project noted in Spain. Good to see the banks are  still backing the likes of such projects . And yes I do believe Gensource will be the next to announce equity financing.  Are you new to this forum? If so welcome. Gensource rarely puts out news ( they have learnt from past doings )unless it is cast in stone so don

[mdjbrown]

Relaxing, shareholders looking for updates is expected considering press releases touting the retention of a media company whose sole purpose is to engage with stakeholders. Lately there has been very little engagement of any kind, so is this thinkHERO hire even on the GSP payroll anymore    SASKATOON, Saskatchewan--(BUSINESS WIRE)--Gensource Potash Corporation (“Gensource” or

[Relaxing]

I suspect  thinkHero is involved at the Institution level to help complete the equity financing but am not sure. Personally I would rather Gensource holdout for the best deal possible for shareholders rather then to just close a bad deal especially for those of us who are into this for the longterm and have been accumulating  the stock since it was worth pennies. In my opinion $.16/sh

[mdjbrown]

I agree 100% Relaxing Any deal considered bad for any parties involved should be avoided at all costs, but often that is unfortunately dictated by who holds the hammer and who is considered the nail.  With valuations of Western Resources Milestone project which is well into construction and potential KCl waiting to be harvested, it would be difficult to assign a higher valuation to the

[CloudyAlways]

If I was a fund manager, I'd be more concerned about cash outflows than finding the next new investment. Having said that, GSP represents at a solid risk/return profile especially at these levels. You know the team will get it done, we just need a bit of patience!

[mdjbrown]

CA, it is always great to hear others perspectives with regards to junior miner hopefuls. You mentioned GSP represents a solid risk / return at these levels. What are you basing that comment on?

[CloudyAlways]

Don't know if you've seen this news but Danakali sold 50% of its Eritrea potash for US $160 million earlie this month. Imo GSP's project is better and in a safer jurisdiction.The world needs more potash supply security. Specfically, it wouln't surprise me to hear that the Brazilians are seeking a Canadian solution https://www.mining.com/danakali-to-sell-stake-in-flagship-colluli

[mdjbrown]

Thanks CA That is a real interesting SOP open pit mining idea Danakali has there.  If it flys it will be very interesting to watch the progress as SOP has a substantial increase in price than MOP. I agree that Brazil could be a wild card in the potash equation, and likely why Verde is ramping up production in Brazil's Minas Gerais area as they would have a distinct shipping

[Relaxing]

Cloudy thanks for this . We are trying to wrap our heads around what Gensources company value would be worth at the stage Gensource is currently at ( take off agreements for 2 plants with Helm, debt financing for $280 million approved, Euler Ermes loan guarantee for $140 million, management comprised of  industry experts, new technology selective solution mining patents - Innovare, London

[stockwatcher248]

ok Relaxing....no equity financing in place...no production...no revenue...400 million shares outstanding...no immediate work program in place....my team has a 5c value on GSP...we'll see who is right...hopefully you

[Relaxing]

Stockwatcher , at  $.05/sh and 423 million shares outstanding looks like your putting a value of $21 million on the properties. Ha

[mdjbrown]

Relaxing, dont forget that Gensource paid just under $2.5 million for the Vanguard leases purchased from Yancoal.    

[mdjbrown]

Very interesting take Relaxing, but the majority of your points are forward looking assuming other factors fall into place.  Most notably, an Equity Financing arrangement. When comparing Gensource to industry peers who are involved in very similiar strategies, your $1.00 target for Gensource might be very ambitious when considering the outstanding shares of the corporation.  You are

[Relaxing]

Mdjbrown, I didnt say $1/sh , we wish. I was saying we had a dollar value on the project.

[mdjbrown]

No worries R, at the end of the day there will need to be a creative Equity financing put together by the team at GSP to move this project forward.  If I am not mistaken, GSP is looking for approx $120 million to take the next step, but that progress is not always shareholder friendly.  At todays shareprice, that is a lot of shares to raise that kind of capital. Look no further than

[Relaxing]

Creative yes, but with everything Gensource has ( take offs , Helm $50 mill , guaranteed bank loan etc. etc) I bet allot of proposals are coming to them . A royalty deal or a third partner into K Clean could be some possible ways so  shareholders are not diluted.

[mdjbrown]

That would be ideal R With financials coming out next month, I hope the previously announced Bridge Engineering study is complete detailing updated capex and opex estimates for the Tugaske Project. That will be very important in moving the needle  At the moment GSP appears to be surviving on draws from the unsecured $5 million Helm Credit Facility, but that wont last forever, so I really

[black364]

Relaxing and Cloudy, I can clearly see that your teams have done your homework, good stuff.  There are key words both of you are using that indicates you have likely spoken with management, the term Brazilian sticks out as being only one of them.  Allow my team to add the term, South East Asia to the party.  There are other teams here that are enlightened as well. Team Big Jake and

[Relaxing]

As far as I am concerned, we are all on the same team and all want to see Gensource and other notable juniors succeed to crack the riddle of selectable solution mining.

[black364]

Hi again Relaxing.  As you gave mention to the list of items the company has in place with only a couple of steps yet to take place, a riddle to crack selectable solution mining isn't one of them, at least it's not for Gensource.  On that particular subject, be careful of the never ending negatives by a poster on a message board with an axe to grind.        

[mdjbrown]

Thanks CA There will always be mining projects that recieve the financial backing required to commence construction, but keep in mind the Highfield Mugo project is a conventional potash with a very shallow deposit compared to those in Saskatchewan. Heavily fluctuating natural gas prices are generally not a show stopper in conventional mining methods either. It all comes down to economic