RE: Price drops and rises I have no answers, but all you said made me think. What is it that the company has and why I believe? I made my list
· No salt piles.
· No long term damage to the area.
· After plant done in 60+ years, take the building down and return it crop land.
· Less than 1% NaCl in product, Industry standard 4-6%. Not good for the crops or land.
· Round pellets that are great for air seeders and do not clog up the machines. Farmers really like that. Current product actually cuts the tubes.
· Already made pellets in office that they give away at farm shows from the wells on the property.
· Proven process. Used in Germany since the 80's. In Israel from the Dead Sea, they actual make carnallite first before turn into KCl.
· 6 Billion tonnes of KCl resources, 154 million tonnes mineable KCl. In the 'old days' a rule of thumb of the value of a potash company was $1 a tonne in the ground or $10-12 per minable tonne
· 18-24 month construction schedule.
· Easy to duplicate plans.
· Approx $200 Million dollars revenue in the 3rd year after plant construction.
· Can be done in increments (phases).
· No use of surface or potable water, other than startup.
· 43-101 compliant feasibility study done. Approx. 6 months to get complete detail engineering (included in the 18-24 month build).
· An industrial circuit is done in the other phase(s), huge upside.
· Mag. phase a bolt on add on for approx $100 million(pre-feas), another huge upside.
· Far ahead of any junior in possible the world.
- story hasn't changed significantly since the company founding. Just add details at each step up
· Someone could purchase the company out right for approx. $480 million ($20/share), Spend 600-800 million to do 650,000 plus what every extra circuit they want(100,000 KCl/Mg). Get a yearly revenue stream of 250 to 300 million dollars. Pay of all the debt in 3+ years. Unheard of in a capital insensitive project. That is far less than BHP has spent so far on the various purchase( Athabasca potash, etc) The money are spending on ‘pre-approval’ work. They could of bought the company and be producing KCl by now. I have no idea why the corporate development officers of various companies have not had their heads on a chopping block for ignoring it (presuming that they haven't talked to the company). Even if they don't want to buy or have a part of it, it would be in the best interest of any company at least to look at it. When this baby is actually out of the woods, I would really hate to tell my boss I did not even look at it.