GREY:MAAFF - Post by User
Comment by
pangloss81on Aug 13, 2010 4:03pm
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Post# 17349679
RE: RE: RE: Here's some help...
RE: RE: RE: Here's some help...It is true that everybody knew that there was a lot of potash to be found, old research (from last year's 43101) suggested 800 billion tonnes along the congo coastline, although that was deemed to be inaccurate to the upside. Further, i think the market not only needs MAA to demonstrate its ability to deliver, but i have been wondering if this 43101 is just a few too many steps away from reality for it to be of immediate interest. The value of this inferred deposit may only come into play when it is outlined how it will be brought out of the ground. What are the economics involved? The study investigated an area of more than 1,000 square kilometers, so in practical terms how are the worthwhile deposits spread across that territory, and does that impact the number of tonnes that can be economically extracted? These are questions that i am asking myself. That is not to say that i am unhappy or bearish or what have you, but rather that it seems that the value of this 43101 is longer term.
I also find myself wondering about the timing of this. Did MAA expect it to give us a pop? Or did they think it would help negotations? (if yes, that seems a touch odd, as we are already in extra time of negotiations). i ask bc these studies are not free, and i am not sure how it might tangibly impact our cash position. If the market reaction is delayed, and we have to issue shares to pay for this study, i am wondering about the wisdom of the timing. i hope that i am wrong.
Unless you believe that this value will never be recognized, perhaps it gives us a chance to accumulate at a good price. I find myself trying to free up money so that i can add another 20% or so. I worked towards that today, buying a few shares at .405. i find it interesting that we struggled with 40 cents today; i dont have level II, but our support seems a lot thinner than i had expected.
Lastly, we just closed at .395, but i notice a big gap between bids and asks. Should be interesting next week.