RE: RE: RE: Comments on .25 cent please
Apartfromtheherd . Please think about this logically. Why would a company invest $1 billion for a fractional share in a massively expensive potash construction especially when the market has shown that for 45 million u can buy a 20% stake in a junior potash company and secure an off take. Why would anyone invest 12.5 times the value of wpx to buy a fractional stake in the project. It makes no sense.
the market has shown the price that is acceptable for stakes in juniors (krn) to be purchased for and it is around about a 15% premium to the current price. So a 20% stake in wpx should reasonably be bought for $23 million(market cap is 86 million) NOT $1 BILLION. A 50% stake should be bought for $60 million or so, not $1 billion.
wpx is an expensive mine to build. I have worked out figures on the back of a napkin (nearly $5 billion) that show riddicous interest costs and massive dilution to existing shareholders and no one has Shown figures proving otherwise .
if I can figure this stuff out logically and clearly on the back of a napkin and present it here on a discussion board unchallenged then major Indian and Chinese companies run by guys way smarter than me will have figured it out to the penny.
Why secure supply with a huge quantity of money($1 billion) when for 1/20th of that you can secure an of take with a junior like krn or aaa that has a staged path to production?
No one has ever answered for me why any company would give even a relatively small amount of money, say $50 million (never mind $1 billion) to a company with a management team that has never built or run a potash mine, has no experience in solution mining.
Several of krn's management have designed, built and operated SOLUTION POTASH MINES in Canada .
if your local doctor(smart guy he is) announced he was going to mine for gold and he had no previous experience in gold mining, would u give him all your money?
the Indians and Chinese are way smarter and shrewder than u and me both.