RE: RE: Boardhousewife I misspelled retiring young, not bored housewife but I guess you are one and the same.
Please people address the facts. Don't hold onto some vague hopes and talk about "share holder rescue/rights plans" that is not a logical argument .
Please discuss the facts below....
Here are some of the reasons that i think Western Potash's shareholders should seriously consider selling half their position and using the money from the sale to take a positon in Karnalyte.
Like all junior potash companies they have both had a proportinate % fall in their SP.
You can benefit by taking the tax loss on Wpx and taking a piece of the only junior world wide that is virtually fully permitted.
in regards to expecting Wpx's EIS in the first quarter as some have posted about, i would advise looking on Krn's website and noting that they first submitted theis EIS in October 2011. It took 13 MONTHS for the to get to this point, and no foreign entity is going to hand over any cash untill they see an EIS approved
Karnalyte has a second product line that is highly lucrative. They have the ability to produce high quality Hydromagnesite that has strong demand from within industry.
When you compare Krn's cost inputs to wpx's, you can see that Robin has been extremely conservative in his estimations. This has been proven by the extra add on's that surfaced in the feasabillity study as "sustaining capex". Basically increased Opex.
Ask yourself this, if you were a foreign entity wishing to purchase a position in a canadian junior, which management team would you choose? The one that had plenty of experience mining diamonds, because not one of wpx' s board or management(the last time i looked at their website) had any experience mining any form of potash, or any experience with solution mining.
Would you really invest with them 2 Billion- 3 Billion dollars? Guys that have no experience AT ALL mining potash. They may be decent genuine guys and great geoligists, but they are not experts in the potash industry.
Compare that to KRN's team -Robin Phinney (CEO, 18% shareholder) spent 15years at PotashCorp in various senior engineering positions.
Siu Ma (VP Engineering and R&D) from PotashCorp, spent more than 20 years in potash and potassium chemical engineering and design.
Ron Olchowski (Surface Operations Manager) was at PotashCorp for over 8 years, and has managed anddesigned several chemical plants.
Mike Robinson (Underground Operations Manager) from Encana has significant experience in geology and directional drilling in the Prairie Evaporite, where KRN’s depositresides.
Robert Macgillivray (VP Sales) has over 30 years of experience in agricultural sales and marketing.
These guys have ACTUAL EXPERIENCE RUNNING AND DESIGNING potash mines/plants, do your own research on this, all true. And they have hired engineers and cleared the site for the mine and plant. All ready to go.
Wpx and all the other Juniors are years behind KRN from a permiting and abillity to start building. Wpx is probably a year away from getting their EIS approved.
Which ones would you trust with your money? Why not find an association of jewlers and ask them to mine potash for you?
On the subjecy of money, would you like to invest all of your money at once? Would you like to put up 3 billion dollars? Or would you prefer to invest a way smaller amount and reduce your risk substantialy by investing $100 million for example.
Wpx requires 3.3 Billion Upfront! even at 50% debt to equity that is still huge.
Has anyone worked out how much the interest payments on 2 billion would cost. Wpx would have to make interest only(hopefully it is % only) payments of between $150- $200 per year while the plant is being constructed. That is a huge cost on top of the Capex of 3.3 billion. No wonder that when they do feasibillity studies it is always a 100% equity scenario. Even in production the interest payments would add about $100 dollars per ton to OPEX.
How much Dilution would a 2 billion investment effect current shareholders.
Krn needs less than $600 million to get to production and can offer entry to 1 or 2 strategic partners for between 50-100 million each, with 50% coming from debt. Do the math, the rest of the scale up to full production can be generated from profit from the 600,000 plant.