RE: RE: RE: Facts for Sammy the boy...Thanks for calling me names, you're a classy guy. I guess when someone has a lot of money tied up in API, fighting back to defend your investment like a cornered animal is the only alternative.
High capital cost can scare off financiers and its often easier to stomach higher operating costs if you make the upfront capital investment easier to stomach, the risk is less.
If BHP wants to be the biggest they do that by taking over Mosaic or PCS, you don't do it by buying a bunch of wheatfields and spending $$$$. Assuming its $3B per 2Mt capacity, if BHP wants to get to PCS's range 16Mt capacity, BHP only has to invest $24B while simulataneously glutting the market with so much potash the price will fall back to $125/t. You can't become the biggest by adding new product, it has to be by takeover. There is a ceiling to the potash market...why do you think OPEC doesn't flood the market with oil, to keep prices high.
This is fun... arguing with someone who doesn't know the business.