Vale Looking To Buy Fertilizer Plays in 2011Article in online Globe & Mail today advising Brazil's Vale looking to invest wopping $24 Billion in 2011 in 'pricer metals' and 'profitble fertilizers'....for export to China.
As a developing resource play, MBC obviously not yet 'profitable'...but gotta think her potential upside is huge ...and as such she would be a very attractive acquistion for some bigger fish like Vale or BHP....especially if/after BHP's deal to acquire Potash tanks.
I'm long MBC....but starting to think this play could end up being a lot shorter than original attentions if bigger fish start scooping up all the attractive fertilizer plays out there :)
Happy investing folks...and GLTA longs!
"Brazilian mining company Vale SA (31.95-0.08-0.25%), the world’s top iron ore producer, will invest a record $24-billion in 2011 as it diversifies toward pricier metals and profitable fertilizers.
Vale’s highly awaited capex budget is 69 per cent higher than this year’s outlays and will lay the groundwork for the company to vastly boost output of key products amid soaring demand for minerals from emerging markets such as China. ..............
“Our budget is consistent with our long-term view of demand and market fundamentals for minerals, metals and fertilizers,” investor relations’ director Roberto Castello Branco said on an earnings conference call."