RE: RE: RE: RE: RE: Boardhousewife Financial advice! OSS your advice below constitute financial advice?
"To the uneducated with deep pockets
Get in now before the "Buddies" of wpx get all the cheapies does that simplify it enough for ya. CheersAAA1212/13/2012 1:55:27 PM2"
I am still waiting for you to accurately and fairly address the points I made earlier. I have posted it about 4 times at this point.
See below....
Krn is virtually permitted
What about the fact that Krn's management team have years of experience in the potash industry and with solution mining. They have designed, built and run POTASH mines, not diamond mines!
what about the fact that Wpx needs 3.3 BILLION DOLLARS to build their mine(TRY TO RAISE THAT IN THIS CRAZY MARKET) versus the fact that Krn needs less than 600 million to build theirs.
Ask yourself this, If u were an Indian entity, would you rather stump up billions of dollars(THE ANNUAL INTEREST PAYMENTS ON THE DEBT WOULD BE huge)and give it to some diamond experts are would you prefer to invest 100 million in a company run by POTASH SOLUTION MINING EXPERTS, and at the same time safely securing an off take arrangement that secures long term supply.
also it is worth mentioning that Krn's final product will exceed wpx's and the industry standard by a wide margin. They will be the cheapest producers of high grade(low sodium 99% purity versus the industry standard of 95/96 % that is especially good for rice crops) in the world.
When u allow for the profit from the magnesium byproduct I personally think Krn will be the lowest cost producers in Canada , if not the world.
i am not saying sell all your Wpx, because although I think their is little or no chance of shareholder value in a JV I do think that given good market conditions(which we are a long way off from IMO) we could hope to see Wpx being bought out.
What I am saying is sell 50% of your Wpx and buy Karnalyte. Both companies have fallen proportionately from their highs so u benefit from tax loss selling and you get to spread your risk by investing in a company that has the best product/management and lowest cost to construction and lowest potential opex of any junior. Also happens to be in first place from a permitting (they have opened an office ,cleared the site and started hiring personnel to build the plant.
also ask yourself how much money Wpx has left after paying for feasibility and EIS submission. They only received 9 million net from recent private placement. Maybe they only have 4- 5 million left after paying for fees. How long can that last?
KRN currently has $25 million (their current cash burn rate is 3 million a year)in the bank and has already paid in full for feasibility study as well as clearing the site and paying for experts to assist government in the constant answering of queries from the government in relation to the EIS .