potential target price . Given the 3 amazing advantages that NPK has versus the competition :
1. location in the main agricultural region of brazil ( 5 million tonnes of potash needed)
2. strip mining with low capex ( kcl process uses rotary kiln as in thermopoatsh PEA , capex ~200-400 millions)
3. strategic importance for brazil & low capex makes financing easy
Per year potential net cash flow ( 5 million tonnes * 400 gross profit = 2 billions per yer ) . For the industry , MOS, POT trade at 6-7 times gross profit. So NPK should reach a mkt cap of 10-14 billions.
at mkt cap of 10 billions, target price = + $ 210 /share
Unfortunately I doubt this potential will be reached beacuse of a buy-out this year.