WPX should be tradingYou are WRONG on several fronts.... Wellington just raised its target today for AAA to $1.65 per share. We have 3 Strong Buys and 2 Buys from the 5 Analysts covering AAA. Your KCL is deep and AAA is shallow. The resource is near 1 Billion Tons of Potash ore at 21%KCL. NI Resource Report due in April to confirm my estimate. We are going to Open Pit mine in the north and Solution Mine in the south. Lowest Opex and Capex for KCL in the world according to the analysts. You should do some DD on Ethiopia as you dont seem to be aware that the Chinese are investing 8 Billion Dollars in railways and infrastructure. The Chinese, Indian and Arabs own 2 million acres of Arable land that is going to need potash....We have 2 strategic partners, ChinaCo. is paying for 35% of capex for 20%offtake pricing security and Liberty Metals of Boston owns 12 million shares and will likely fund the balance of capex we need for mine construction. We DONT NEED or WANT a take out offer....we are going to a mine and have an Enterprise Value of $16 per share which would be the industry norm for .80 cents per share forward cash flow...
Mr Parsons did initial drilling 50 years ago and it was nothing to do with profitability...his conventional mine shaft flooded and he suspended work...but kept his records which gave AAA targets to start drilling on...we are now past that and just aquired a new property that is proving up huge amounts of KCL. We are just completing the phase one 13 drill holes and we are planning 16 more shallow drill holes to double the resource estimate due out in 2 months..
We expect to open pit a track 1 mile wide by 10 miles long at shallow depth of 160 meters and a cost of $50 opex per ton.
You should do some reading before you post such utter nonsense and confuse shareholders...period.
Mr Cook just chose Allana Potash as one of his Top Picks on BNN last week...
If you are in doubt about where WPX should be trading at read the following:.
WPX (Western Potash) closed Monday at $1.26 and closed today at $1.34
AAA (Allana Potash) closed Monday at $1.15 and closed today at $1.18
AAA will have lower Capex and Opex costs stated by all analysts and reports. AAA is not looking for a deep pocket major for a take over and pay $3.25 a ton for the measured and indicated KCL in the ground,
AAA has the real goods and wants to go into production. Farhad is going to China next week and if he returns with an inked deal with ChinaCo. for the first offtake agreement for 35% of the capex costs of the mine.... "The day the Chinese actually put up $300M will be the day we're excited. " that day may come sooner than we think...The negotiations were concluded several months ago, and terms agreed upon, so an inked deal will go along way for AAA and investors.
IMHO, Allana should be currently trading at a premium to WPX. It may take the drill results from holes #9 and #10, or Farhads return from China with "a paper in hand." alot of things separate Allana from some of the others....
Karma
Identifying top seeds in potash boom
Published on: December 10 2010 12:00 GMT
TER: Getting back to your advantaged companies, why isn't Western Potash in that category?
RW: We raised our target on Western Potash, too, but we're less optimistic on its prospects given that it's maybe the fourth or fifth junior in the Saskatchewan Basin. Over the past couple of years, BHP has acquired Anglo Potash Limited and Athabasca Potash Inc.; and now, Potash One is bidding for K+S. Already these three juniors are arguably further advanced than Western Potash. Plus, you've got the brownfields, the incumbents and the big players—PotashCorp, The Mosaic Company (NYSE:MOS) and Agrium Inc. (NYSE:AGU). They could well expand their capacity for potash in the basin in western Canada.
So, Western Potash is late to the game by comparison and the cost of capital is significantly higher than it is for the brownfields. This isn't to say the stock price can't go higher, because clearly it went through our target; but we're somewhat tempered on our optimism. A lot of things have to go right for that Western Potash mine to be built and we're just not persuaded it's likely to happen
(Allana): The company's also negotiating with this investor to put up something like 35% of the capex to help finance the project. In turn, Allana has committed to give this partner discount-to-market prices on potash until it gets its capital back.
The terms have yet to be finalized, but it's an interesting way to finance the project. The day the Chinese actually put up $300M will be the day we're excited. Right now, it's not concrete; it's just in negotiations. Even so, a lot of things separate Allana from some of the others