IC Potash: The World’s Most Advanced Junior SOP Pr IC Potash has a multitude of value creating catalysts coming up:
The company is scheduled to launch a bankable feasibility study with a major engineering firm which will display the level of technical depth and expertise contained within the IC Potash team.
IC Potash will also be providing information on how simple the water supply will be to obtain. The project is located in the deserts of New Mexico, some ask, what about water? The answer, there are billions of gallons available from the Capitan Reef, and confirming the availability of this water supply will further de-risk the IC Potash project...
In terms of the strategy to convert this IC Potash opportunity into a reality, the management team has devised a financial strategy that includes attracting world class partners, such as the recently announced transaction with Yara International ASA, a first of its kind partnership with the leading distributor of plant nutrients globally. This investment in combination with the previous one by Resource Capital Funds (+20% of the stock), the world’s largest mining focused private equity firm, proves IC Potash’s ability to attract the very best financial partners to build this project.
The company is currently trading at an unbelievably attractive valuation with $58 million cash. This means the market is currently valuing a project with more than a $1.3 billion NPV at about $60 million, a +1,000% return from today’s prices!!!
The IC Potash project places considerable pressure on other SOP producers including Compass Minerals, K+S Kali, and SQM. In the case of Compass Minerals, currently the only large scale producer of SOP in the US, Yara and ICP represent a considerable threat to their market share and pricing power. It is reasonable to assume Compass may attempt to acquire ICP to protect its position in the most profitable market for SOP globally.