RE:good newsNot a good day. I was starting to think that this post wasn’t working.
Hard to think that the Russians would want to sell their potash for (10% or 20%) less and produce 8% more?????? Not sure that makes much sense and if this is not just some hard ball negotiating with their BPC.
As for KRN, whether they can produce for less, let’s be honest, given a lot of unofficial and exaggerated claims over the past few years, everything has taken longer for so many legitimate reasons. So the big question that remains unanswered is “if and how” they will get the $250 million or so of capital needed. Right now they seem to be dancing around the question and until this question is answered, what value are the shares worth? Well, if and when they start production in 2015 or later and with a full year of cash flow with all the costs, it might be worth $22 and not much if they can’t get the stuff out of the ground. Until then????
So whether they can produce for less, this has to be confirmed through official channels and right now even if they have gotten certain necessary approvals and got an Indian investor, despite many claims, they are far from batting 100 and behind with construction that should now be under way based on original comments. So I do not know who or what one should believe, but talk is cheap and KRN’s credibility is under scrutiny. Only they can provide the right answers. At the last annual meeting they did not provide shareholders with the answers they were looking for and reflected in the prior dip in price to $5.70 and now compounded by current news.
So until we know more, people are fearful as current potash prices seem in question even if it might be exaggerated.
Ultimately not all potash is the same and there are many more factors at work here.