Potash Pick of the Decade!!!
The Race to be the World’s Next Potash Giant is on in Ethiopia’s Danakil Basin
Many of you are very familiar with Allana Potash and its meteoric rise over the last couple months from a 40 cent stock in the fall to its current $1.57 it trades at today. A price that most people think will still bring Allana shareholders triple digit returns over the coming years. I mentioned that Allana was a highly prospective play in an emerging potash basin in the world. Since I mentioned AAA in the AG article on Jan. 16th at
.90 it raced to $2.40 in 3 weeks for a 166% gain. At $1.57 Allana still sits at a 75% gain and is currently sitting at a very attractive buy point for a push to $2 plus. So what is all the fuss about...? Allana being one of the best performing stock in that group the smart money is piling in a big way.
We all know the Ag story, rising food prices, less arable land, more demanding diets, high yields have farmers looking for ways to increase crop yields. As well... future population growth has us scrambling to figure out how to feed 3B more over the next generation which has put potash into the forefront as a logical solution.
But what has got AAA on fire so much more than the rest?
Simply put… The Danakil depression is considered the 4th most important potash belt in the world. When comparing Danakil in Ethiopia to the 3 major basins where almost all of the global production occurs in Saskatchewan, Brazil and Russia... Danakil in Ethiopia is twice as large as the Upper Kana River Basin in Russia and similar in length to the Manaus – Santarem Basin in Brazil being only 50km smaller at 350km in total length. Simply put, Danakil has the potential to be a major producing potash region similar to the other 3 major potash producing regions in the world.
The Danakil Depression is just as big as any of these other world class basins that have produced Potash giants and currently has no production.
Are you seeing the picture yet?
Are you getting it?
Danakil is setting up one of these companies in Ethiopia to be...
THE WORLDS NEXT POTASH GIANT!!!
You have strategic production in 3 of the 4 corners of the world in major potash basins and the missing link to global production is in Ethiopia. What gives Ethiopia and Danakil a leg up on anywhere else in the world?
LOCATION, LOCATION, LOCATION…
With the majority of the potash coming out of the western hemisphere or Russia…
Thank God for Ethiopia and the Danakil depression. Ethiopia is a landlocked country yes, but still close to the red sea and global shipping routes to the Mediterranean, the Indian Ocean and beyond. Ethiopia is perfectly placed in this world to be the next big potash producing country filling a huge need in the region for quality fertilizers as well other parts of the world. The Chinese are very interested in the area making a strategic investment in AAA and this little Ethiopian potash company is certainly on their radar as well. Considering the rather small investment made in AAA, maybe the Chinese are saving their money for this one.
So when I said there is an opportunity for several mid tiers in the space I was envisioning projects like WPX, ICP or AMZ coming into production, what I failed to mention is that the Danakil depression in Ethiopia, in all likelihood will produce THE NEXT POTASH GIANT! There is no production out of this basin and it is strategically located in the world to ship to places like India and China who are in need of securing supplies of such resources for the next generation. Ethiopia represents a unique opportunity because there will be another giant potash company birthed out of this region in which I describe as a race to bring next potash mine into production in Ethiopia.
What makes Ethiopia even more attractive is that these projects are massive and shallow, unlike the Saskatchewan projects which are very deep and expensive to bring into production. WPX has capex costs in excess of $2B!!! The Ethiopian projects are shallow in comparison and offer very attractive returns and much faster payback periods, with much less initial capex investment than the Canadian projects.
Ethiopia is an unprecedented opportunity.. for the first time in a century, it is finally stable enough for long term foreign investment.
So hopefully this explains the magnificent fuss over AAA and its leap in share price over the past few months.
I am here to tell you that Allana is great and is off to the races with strategic investments and great drill results.
BUT….
Allana is a pony when compared to this racehorse, AAA isn’t even close to being the best of the bunch. I am sorry to say but this next pick is like comparing a NASCAR to a bumper car, a thoroughbred racehorse to a pony. Seriously, don’t get me wrong, I love Allana, but this company has a plan and a resource that is one of the shallowest of all the companies in the Danakil Basin. The 2 companies have comparable resources at over 100Mt of 21% KCL, but the vision of the companies and being comparable ends there. While Allana is a solution project, this company has open pit potential between 20 to 100 meters in depth. Allana's resources start at about 100 meter depth.
This new Potash Pick plans on 5 times the annual production!!!
This new Potash Pick has 3 times the land position!!!
This new Potash Pick trades at 1/3 Allana’s market cap on f/d basis!!!
This new Potash Pick has been trading less than 2 weeks!!!
No one knows about it yet…!!!
It is STILL SUPER CHEAP!!!
Are you interested???
I didn’t hear you…
LOUDER.
Are you interested???
Did I say 10Mt per year production?
10Mt per year production!!!
In potash mining no one cares about the reserves. Every potash company has reserves for hundreds of years of production. What matters is PRODUCTION! This little potash company is planning on 5 - 10Mt a year!!! Allana is going for 1 - 2Mt per year.
I am a big picture thinker, what company would you rather own?
The company with…
OrThis is a pretty easy answer when all these companies have similar timelines and have started within 4 months of each other. You just need to ask yourself… what makes the better story?So let us look at the variables when trying figure out what we want to invest in for a company that has all the right variables to be the winner in this derby.
This company has 60% the shares outstanding of Allana. Meaning a much tighter float!!! On top of having less than 100M shares out… most of the shares are in escrow!!!
There just isn’t that many shares floating around. There is a limited availability of shares to the public, so if you want them cheap, you better buy them quick, because I doubt this company trades under $1 much longer. Don't count on a financing to get your shares either. It's just not gonna happen with this little co...
They are fully financed through feasibility!!!The public vehicle they chose and they way they structured the financing has left them in a position to be completely undiluted and fully financed to mine build. The share structure of this company won’t change anytime soon and there are no possibilities of any financings in the foreseeable future. This company is locked and loaded and ready to go. Ready to develop a project with a 10Mt production goal in mind, ready to be at the center of this race to production in this strategic up and coming potash belt in Ethiopia.
- Superior land position? Check.
- Superior growth? Check.
- Superior investment vehicle? Check.
- Superior value? Check.
- Fully financed? Check
The Danakil Basin will produce the next potash giant and it very well could be this little known potash company.