GREY:MAAFF - Post by User
Post by
bigguy6on Oct 28, 2010 4:01pm
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Post# 17626139
Vale Looking to Buy 'Profitable Fertilizers' in 20
Vale Looking to Buy 'Profitable Fertilizers' in 20
Article 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.
Just made similar post on MBC board...as MBC and MAA are my two junior fertilizer 'Top Pick' plays in this space. Was initially thinking with Vale and MBC both Brazialian outfits...the two were natural fit .....but on reflection note it is likely way more applicable to MAA board....especially just after reading the eartlier Scotia research post in which Scotia analyst speculated that MAA financing could likely materialize from either China ...OR LATIN AMERICA!!!
Hmmmm...is Brazil in Latin America? ...let me dust off my atlas and see :)
Pure speculation of course...but then then again....that's all we've got at this point ....and you have to admit...it is a great fit!
As a developing resource play, MAA obviously not yet in 'profitable' category...but gotta think her potential upside is huge ...and obviously a no brainer at this point...both from valuation and mining start up potential perspective for some big fish like Vale (or BHP ...especially if BHP's deal to acquire Potash tanks) ....who are actively looking to acquire attractive fertilizer plays. She just needs someone with deep pockets full of cash to move into production....and frankly i'd much rather see an exprierced mining giant like Vale involved...or take scoop the entire project.
I'm long MAA....but starting to think this play could end up being a lot shorter than intended :)
"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."
, the world’s top iron ore producer, will invest a record $24-billion in 2011 as it diversifies toward pricier metals
, the world’s top iron ore producer, will invest a record $24-billion in 2011 as it diversifies toward pricier metals
Happy investing folks...and GLTA longs!