RE: BHP to sell up to 10 assets Vale suspending operations in Argentina
BHP likely to announce postponing or cancelling the Jansen Project
Prospect Global Resources, the small Arizona potash company that inked the even smaller offtake agreement with China several months ago, had its major investor not only back out of the deal, but also charge Prospect Global nearly 10 million dollars to do so. Down 30% today and down about 70% since announcement of their offtake agreement. Why would China sign an offtake agreement with a company that has little chance of building a mine? Negotiating power with Canpotex -- and it worked. You think China is also looking for a real offtake agreement with someone else that can actually build a mine? I'd take a guess at yes.
Passport Potash, the other small Arizona potash company, came out with an updated resource estimate a couple weeks ago. Taking a few lessons from Allana, they have managed to twist their numbers around to actually sound positive. They now have a whopping 397 million tonnes of measured and indicated "mineralized material" -- which really means they only have 58 million tonnes of recoverable KCL, and that's at a grade of only 14%. Compare that to Encanto who now has upgraded proven and probable RESERVES of 162 tonnes of recoverable KCL at an average grade over twice what passport is boasting. And that is before our upcoming updated resource estimate.
Nice to see where Encanto sits amongst everyone else. Looking at the competition, I like what I see. I agree 100% with retiringyoung. I don't care when this deal happens with India -- as long as it does happen. Because when it does, it's off to the races with Encanto being the only junior potash company with prospects of being a major player within a few short years.
srpat